Private equity firm Warburg Pincus has raised US$2.8 billion ($3.8 billion) in committed capital for the Warburg Pincus Asia Real Estate Fund.
According to the firm, the fund represents one of the largest ever first-time dedicated real estate funds globally and is the second-largest active opportunistic real estate fund in Asia.
The fund launched in November 2020 with an initial target fund size of US$1.5 billion. Due to the strong demand from the limited partners, the fund received commitments in excess of the $2.5 billion hard cap set during the fundraise and completed a final close at US$2.8 billion.
Over 60% of the capital raised was from institutional investors in Asia. The limited partners that have committed to the fund include existing investors in Warburg Pincus’ funds and new investors to the firm, including leading public and private pension funds, sovereign wealth funds, insurance companies, endowments, foundations, and high-net-worth individuals.
The fund will be a standalone fund, focusing on investing in asset-level real estate opportunities in Asia. In partnership with experienced real estate developers, operators and entrepreneurs, the fund will be used to buy and develop real estate assets in Asia with a focus on New Economy real estate including logistics, data centers, IT office, life science parks, and multifamily real estate.
The fund will also invest in the repositioning of underperforming or obsolete real estate assets as well as those in special situations.
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“This inaugural fund marks a major milestone for our Asia real estate business and further reinforces our position as the ‘partner of choice’ for real estate developers and operators in the region. As we start to deploy the capital at scale, we look forward to leveraging the firm’s deep experience, strong record and robust ecosystem across the region,” says Jeffrey Perlman, managing director and head of Asia-Pacific real estate and Southeast Asia at Warburg Pincus.
Warburg Pincus has been investing in Asia real estate companies and platforms for over 15 years through its main global funds and China-SEA-focused companion funds. It has over $6.5 billion invested in more than 40 real estate ventures including platforms co-founded alongside entrepreneurs such as ESR, Vincom Retail, PDG, DNE, and BW Industrial.
Commenting on the strong demand from the investors, Perlman says, “We are currently witnessing a once-in-a-generation change in real estate driven by technology where leading global investors are seeking to rebalance their portfolios by investing more capital into New Economy real estate where they have been meaningfully underweight.”
Photo: Bloomberg
