SC Capital raises US$850m for latest APAC discretionary property fund

Singapore-based SC Capital Partners (SCCP) has raised US$850m in the final closing of its fifth discretionary real estate fund, Real Estate Capital Asia Partners V (RECAP V).

SCCP raised institutional capital from North America, Europe and Asia Pacific, including public and private pension funds, university endowments, asset managers, private foundations, family offices, insurance companies and funds of funds, the firm said.

SCCP chairman and founder Suchad Chiaranussati said the fund has already deployed $280m into 10 investments across Australia, Japan, China and South-East Asia.

Suchad Chiaranussati (image: SC Capital Partners)

To date, the fund has invested in logistics in China, office real estate in Tokyo and the Australian capital of Canberra, as well as senior-living housing in Brisbane.

“We continue to see elevated valuations in most markets in the Asia-Pacific region and will exercise caution through maintaining low leverage and disciplined underwriting in defensive asset classes,” Chiaranussati said.

“We foresee some market volatility in the coming years and RECAP V is structured appropriately to capture this market opportunity.”

The capital raising comprised $650m of fund equity commitments, as well as $200m of co-investment interest from existing RECAP V investors.

The firm said the RECAP V investment strategy was similar to its predecessors, with a focus on acquiring a portfolio of Asia Pacific real estate investments through a disciplined investment approach of targeting undervalued, undermanaged and distressed assets and special situations.

SCCP has 43 employees across five locations including Singapore, Hong Kong, Bangkok, Tokyo and Shanghai.

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