Warburg Pincus Closes Asia’s First $ 2.8 Billion Real Estate Fund

HONG KONG: US private equity powerhouse Warburg Pincus has shut down its first Asian-focused real estate fund at $ 2.8 billion, the company said on Wednesday.

The Warburg Pincus Asia Real Estate Fund is the second largest dedicated fund for the industry in Asia, according to data provider Preqin. Blackstone Group raised US $ 7.1 billion in the region’s largest real estate fund in 2018, according to data.

The fund will focus on investing in asset-level, tech-based or tech-driven real estate opportunities in Asia, Warburg said in a press release.

“We are currently seeing a unique shift in technology-driven real estate, where the world’s leading investors are looking to rebalance their portfolios by investing more capital in new economy real estate where they have been significantly underweight,” said Jeffrey Perlman, chief executive of the company 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, the statement said.

It will also invest in the repositioning of underperforming or obsolete real estate assets and in specific situations, the company said.

Warburg’s real estate fundraiser 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 aims to raise US $ 9 billion in its third and largest real estate fund in Asia, the company’s chief operating officer said in October.

Fund managers have raised a total of US $ 17.1 billion in 37 real estate funds for Asia so far this year, according to data from Preqin.

Warburg’s inaugural real estate fund in Asia has exceeded its initial target of US $ 1.5 billion and its fixed cap of US $ 2.5 billion due to strong demand, the company said. More than 60% of the capital raised came from leading institutional investors in Asia, he said.

The company has been in the Asian real estate industry for more than 15 years through its leading global funds and companion funds focused on China and Southeast Asia, with more than US $ 6.5 billion. invested in more than 40 real estate projects.

(Reporting by Kane Wu. Editing by Gerry Doyle)

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