Warburg Pincus Closes Asia’s First $2.8 Billion Real Estate Fund
Band Kane Wu
HONG KONG, December 22 (Reuters) – US private equity giant Warburg Pincus WP.UL closed its first Asia-focused real estate fund at $2.8 billion, the firm announced on Wednesday.
The Warburg Pincus Asia Real Estate Fund is the second-largest fund dedicated to the sector in Asia, according to data provider Preqin. Blackstone Group raised $7.1 billion in the region’s largest real estate fund in 2018, the data shows.
The fund will focus on investing in asset-level, technology-based or technology-focused real estate opportunities in Asia, Warburg said in a press release.
“We are currently seeing a once-in-a-generation shift in technology-driven real estate, where leading global investors are looking to rebalance their portfolios by putting more capital into new economy real estate where they have been significantly under-invested. weighted,” Jeffrey said. Perlman, the company’s managing director and head of real estate in Asia Pacific and Southeast Asia.
The fund will focus on areas such as logistics, data centers, IT offices, life science parks and multi-family real estate, according to the release.
It will also invest in repositioning underperforming or obsolete property assets and those in distress, the firm said.
Warburg’s real estate fundraising comes as a growing number of global private equity managers seek to diversify into Asia.
The American company KKR & Co closed its first real estate fund in January at 1.7 billion dollars.
Blackstone is aiming to raise $9 billion in its third and largest Asian real estate fund, the firm’s chief operating officer said in October.
Fund managers have raised a total of $17.1 billion in 37 Asian real estate funds so far this year, according to data from Preqin.
Warburg’s first Asian real estate fund exceeded its original target of $1.5 billion and its cap of $2.5 billion due to strong demand, the company said. More than 60% of the capital raised came from top institutional investors in Asia, he said.
The firm has been active in the Asian real estate sector for over 15 years through its core global funds and companion funds focused on China and Southeast Asia, with over $6.5 billion invested in more than 40 real estate projects.
(Reporting by Kane Wu. Editing by Gerry Doyle)
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