Key Takeaways
- • Phoenix Property Investors closed Phoenix Asia Real Estate Investment Fund VI at $1.15 billion in September 2019, exceeding its hard cap by $250 million, according to placement agent Monument Group.
- • The fund reached its initial $900 million target in August 2019 and was granted a formal extension to lock in additional capital from limited partners.
- • Phoenix has committed to 17 investments from Fund VI totalling approximately $424 million, per founder Benjamin Lee.
- • Fund VI targets opportunistic real estate across residential, office and retail in Hong Kong, China, Japan and Taiwan, with a base of endowments, foundations, pensions and sovereign wealth funds.
- • The close is part of a wave of Asia-focused real estate fundraising, including Kailong's $575 million final close and PAG's targeted $2 billion SCREP VII.
Summary
Phoenix Property Investors has closed its sixth pan-Asian opportunistic real estate fund, Phoenix Asia Real Estate Investment Fund VI, at $1.15 billion, according to placement agent Monument Group. The close took place in September, and the final amount surpassed the fund's hard cap by $250 million. The fund had reached its initial $900 million target in August, after which investors granted the manager a formal extension to allow additional limited partners time to complete internal due diligence and sign commitments.
Monument Group, a Boston-based placement agent, said the investor base consists of institutional limited partners including endowments, foundations, pension plans and sovereign wealth funds across Asia, North America, Europe and the Middle East. Monument managing director Robert Mast attributed the strong interest to the team's long record as value-oriented real estate investors. Phoenix was founded in 2002 by Benjamin Lee and Samuel Chu, and has managed more than $10.5 billion of gross real estate assets. Its fifth opportunistic fund closed at a $750 million hard cap in December 2013, and Fund IV closed at $460 million in 2010. Fund VI first closed at $221 million in January 2018 after launching at the end of 2017.
Lee said in a statement that Phoenix has committed to 17 investments from Fund VI totalling approximately $424 million. Details of these investments have not been disclosed. The firm's most recently publicised deal was the purchase of three community malls in Tseung Kwan O, Hong Kong, for HK$3.38 billion, an average of HK$11,266 per square foot across roughly 300,000 square feet of gross floor area.
The close comes amid a flurry of Asia-focused real estate fundraising. Kailong Real Estate Investment reached a final close of $575 million for its second US-dollar China-focused property fund, more than 30 percent above its original target. PAG is reported to be seeking $2 billion for its Secured Capital Real Estate Partners VII, and Angelo Gordon closed its fourth Asia opportunistic fund at $1.3 billion. UK-based Actis has also filed for a second Asia real estate fund, Actis Asia Real Estate 2, with a $600 million target, according to PE News.
Monument Group, a Boston-based placement agent, said the investor base consists of institutional limited partners including endowments, foundations, pension plans and sovereign wealth funds across Asia, North America, Europe and the Middle East. Monument managing director Robert Mast attributed the strong interest to the team's long record as value-oriented real estate investors. Phoenix was founded in 2002 by Benjamin Lee and Samuel Chu, and has managed more than $10.5 billion of gross real estate assets. Its fifth opportunistic fund closed at a $750 million hard cap in December 2013, and Fund IV closed at $460 million in 2010. Fund VI first closed at $221 million in January 2018 after launching at the end of 2017.
Lee said in a statement that Phoenix has committed to 17 investments from Fund VI totalling approximately $424 million. Details of these investments have not been disclosed. The firm's most recently publicised deal was the purchase of three community malls in Tseung Kwan O, Hong Kong, for HK$3.38 billion, an average of HK$11,266 per square foot across roughly 300,000 square feet of gross floor area.
The close comes amid a flurry of Asia-focused real estate fundraising. Kailong Real Estate Investment reached a final close of $575 million for its second US-dollar China-focused property fund, more than 30 percent above its original target. PAG is reported to be seeking $2 billion for its Secured Capital Real Estate Partners VII, and Angelo Gordon closed its fourth Asia opportunistic fund at $1.3 billion. UK-based Actis has also filed for a second Asia real estate fund, Actis Asia Real Estate 2, with a $600 million target, according to PE News.
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