The Carlyle Group has announced that it has raised $410 million in equity for its first Asian real estate fund, Carlyle Asia Real Estate Partners. With leverage, this fund can purchase approximately $1.5 billion in real estate assets.
Ten investment professionals based in Beijing, Hong Kong, Seoul, Shanghai and Tokyo will invest primarily in office, retail, residential and industrial properties in China, Japan and Korea. Globally, Carlyle now has seven real estate funds with a total of $4 billion in committed capital.
Jason H. Lee, Carlyle Managing Director and Head of the Asia Real Estate group, said, "We appreciate the support of our investors in this new fund. The success of our three pre-fund investments demonstrates that private equity has an important role to play in the Asian real estate market. We will continue to target properties where we can add value through hands-on asset management and identify strategic partnerships with local operators and developers."
Rio Minami, Carlyle Managing Director and Head of the Japan Real Estate team, said, "Last year Carlyle started real estate investments in Japan where we see opportunities in its sizable economy. With the new fund, we will build up a balanced Asia real estate portfolio in our three target markets: China, Japan and Korea."
Daniel A. D'Aniello, Co-founder and Managing Director of The Carlyle Group, said, "Jason Lee and the team have done an excellent job expanding our global real estate franchise in the Asian market. Their early success instilled confidence in our investors and enabled us to raise a significant first Asian fund."
Summary of Carlyle Asian Real Estate Investments:
- Century Tower (20-story office building in major office district in Seoul)
- Pacific Tower (20-story office building in major office district in Seoul)
- Omiya Center Building (14-story office building in Saitama City, a major satellite city north of Tokyo)
- Diamond Warehouses (900,000 ft² records retention and storage complex outside Tokyo, Japan)
Source: The Carlyle Group