Singapores SC Capital Makes Final Close Of Fifth Realty PE Fund At $850m

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Singapore-based real estate private equity firm SC Capital Partners has made a final close of its fifth discretionary real estate private equity fund Real Estate Capital Asia Partners (RECAP V), at $850 million.

The total mop-up comprises $650 million of fund equity commitments plus $200 million of co-investment interest from existing RECAP V investors, the firm announced on Wednesday.

RECAP V, a fund that started raising capital in August 2017, was earlier targeting a $1 billion vehicle that it planned to close by the end of last year.

The news of RECAP V’s final close being short of its target was first reported by DEALSTREETASIA earlier this week.

Institutional investors of RECAP V include public and private pension funds, university endowments, asset managers, private foundations, family offices, insurance companies and funds of funds from countries such as North America, Europe and Asia Pacific, SC Capital said.

“We are sincerely grateful for the ongoing trust and support from our existing investors, who comprise 82 per cent of RECAP V, and warmly welcome our new Limited Partners. We remain steadfastly determined to continue delivering attractive risk-adjusted returns through our entrepreneurial and deep-value approach to deploying capital,” said Suchad Chiaranussati, Chairman and Founder of SC Capital Partners.

The RECAP V investment strategy is similar to the other RECAP Funds, that typically focus on acquiring portfolios of pan Asia-Pacific real estate investments through a disciplined approach of targeting undervalued, undermanaged and distressed assets and special situations.

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

The fund has already completed 10 investments to date across Australia, Japan, China and South-East Asia. These include logistics warehouses in China, senior-living housing in Brisbane, Australia, plus office assets in Canberra, Australia and central Tokyo, Japan.

Founded in 2004, the SC Capital Partners is an employee-owned, pan Asia-Pacific real estate investment management firm with over $7.2 billion in assets under management across five discretionary closed-end opportunistic funds, one discretionary core-plus fund and two listed REITs, including the largest hotel REIT in Asia Pacific, Japan Hotel REIT and TPrime REIT estate funds.