The independent private equity real estate advisor MGPA announce the second close of MGPA Asien Spezialfonds with further commitments of €50 million from a German insurance company. This brings the total commitments to €135 million since the Fund was launched in September 2011.
The Fund completed its first close in September 2012 with commitments of €85 million from three institutional investors. The target equity capital of MGPA Asien Spezialfonds is €500 million.
MGPA Asien Spezialfonds is a yield focused core-plus product regulated by the German Investment Act. It is intended primarily for institutional investors in German-speaking countries seeking exposure to Asia-Pacific real estate markets, with an investment focus on established markets such as Japan, Australia, Hong Kong, Singapore and Malaysia. MGPA has operated in Asia since 1999 and maintains a substantial real estate organization in the region, with seven offices and over 130 employees.
MGPA Asien Spezialfonds offers institutional investors the opportunity to invest in Asian real estate via a recognized German regulated product structure while leveraging MGPA’s extensive platform and expertise in Asia.
In March, MGPA successfully acquired South Shin Otsuka Building in Otsuka and Shinjuku TX Building in Shinjuku, Tokyo on behalf of the Fund. These acquisitions follow the closing of Optima Centre in Perth, Western Australia which was the first deal made by the Fund.
The South Shin Otsuka Building was completed in 1993 and comprises 12 floors including one basement floor and 34 car parking spaces. The building is 100% let with well diversified multiple tenants and has 5,357 m² of net rentable area (NRA) and 7,597 m² of gross floor area (GFA). Located one stop from Ikebukuro, the major gateway station in Toshima-ward, Otsuka is a stable office market within the Yamanote loop line, and well supported by transport links.
Shinjuku TX Building was completed in 1990 and comprises 8 floors. The building is also 100% let with multiple tenants and has 7,509 m² of NRA and 11,257 m² of GFA. It is located in Shinjuku-ward, one of the major office markets in Tokyo’s Central Five Wards and has excellent transport links to Higashi-Shinjuku Metro Station (1 minute walk) and JR Shin-Okubo Station (10 minutes’ walk) on the Yamanote loop line.
The Fund acquired 73% of the Shinjuku TX Building on a NRA basis with the remaining 27% owned by an institution which is a subsidiary of Tokyo Tomin Bank.
“The most interesting markets at present for creating low risk real estate returns are in Japan, Australia and Hong Kong, driven by macroeconomic and real estate market dynamics. As always, the keys to success will be large, experienced teams on the ground and expert local knowledge” commented John Saunders, CEO – Asia for MGPA.
“MGPA Asien Spezialfonds will target attractive, income-producing investments with asset management potential, especially in the office and retail sectors. Annual distributions to investors and longer-term capital growth potential are key pillars of the investment strategy” explained Christian Schulte Eistrup, MGPA’s Managing Director of Capital Markets – Europe, discussing the launch of the Asian property fund.
Universal-Investment is the investment company (KAG) for MGPA Asien Spezialfonds, and provides the regulated German fund structures for the Spezialfonds, securing compliance with supervisory and regulatory requirements at investor and fund level, bridging asset management specialized competencies with German investor needs. With more than €162 billion Assets under Administration Universal-Investment is the largest independent investment company in German-speaking Europe.
Selinus Capital GmbH is MGPA’s exclusive distribution partner for MGPA Asien Spezialfonds in Germany, Switzerland and Austria.