PAG Real Estate today announced the final closing of Secured Capital Real Estate Partners VI (SCREP VI), with US$1.9 billion in investor commitments, the Asian private investment firm said today.
PAG Real Estate is the real estate investment and asset management arm of PAG, one of Asia’s largest independent alternative investment fund managers.
The fund exceeded its initial target of US$1.5 billion, and hit its US$1.9 billion hard cap due to significant interest from its strategic investment partners, including major institutional investors from North America, Europe and Asia, the company said.
The fund will focus on distressed debt and property investments in Japan as well as opportunistic real estate in China, Korea and other selected markets. Park Hill Real Estate, a long-term partner of PAG, assisted with the fundraising efforts.
SCREP VI is the seventh opportunistic fund to be launched by PAG’s real estate strategy, formerly known as Secured Capital. The firm currently manages US$5 billion in real estate assets, and has more than 140 team members in seven offices across the Asia-Pacific region.
Since formally beginning fundraising in the third quarter of 2016, the fund has already closed eight deals with a total investment value of more than US$400 million, including outstanding deals in Japan, China and Hong Kong.
"PAG has a well-recognized track record of delivering strong returns across investment cycles, as our previous six funds have shown," says Jon-Paul Toppino, managing partner of PAG Real Estate and group president of PAG. "We firmly believe that the Japan market will continue to offer strong risk-adjusted returns, and our experienced regional team is well-placed to capitalize on further opportunities throughout Asia."
Founded in 2002, PAG manages approximately US$18 billion across private equity, real estate and absolute return strategies with more than 350 staff across the region. PAG Real Estate has invested a total of more than US$25 billion through a series funds into more than 6,700 properties across Asia.