PAG raises US$2.75bn for new opportunistic Asia property fund

Hong Kong-based investment manager PAG Real Estate has raised US$2.75bn in the final closing of its Secured Capital Real Estate Partners (SCREP) VII fund.

The opportunistic fund received commitments from 25 investors, primarily made up of pension and sovereign wealth funds from North America, Europe, the Middle East and Asia, the firm said.

SCREP VII will target distressed debt and property investments in Japan, in addition to opportunistic property in China, Australia, Korea and other selected markets.

The fund, which is PAG Real Estate’s ninth opportunistic investment vehicle, raised US$2.5bn in its first close in December 2019 after just five months in the market.

“We’re very grateful to our partners for this continued show of support, especially during such an unprecedented period,” said Jon-Paul Toppino, managing partner of PAG Real Estate and group president of PAG.

“Like all investment firms we are watching the current coronavirus outbreak with concern, and our greatest priority is the health and safety of our staff and everyone we work with. Still, we remain confident that Asia and Japan in particular represent attractive long-term opportunities, and we hope to continue to justify the faith our investors have placed in us.”

The fundraising comes after PAG and Seoul-based Inmark Asset Management purchased one of Seoul’s most luxurious hotels, Grand Hyatt Seoul, from a Hyatt affiliate in December last year.

The investment manager also oversaw a US$700m investment into an office portfolio spanning Asia Pacific on behalf of a group of institutional investors in July last year.

PAG Real Estate was founded as Secured Capital Japan in 1997, and currently has more than US$9bn in funds under management across Asia Pacific.

PAG Real Estate is the property arm of PAG, which invests in private equity, real estate, private debt and absolute return strategies.

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