Singapore-headquartered asset manager SC Capital Partners has closed its sixth Asia Pacific opportunistic real estate fund at $900 million, the firm said Wednesday.
The fund, Real Estate Capital Asia Partners VI (RECAP VI), focuses on growth-oriented investments across developed Asia-Pacific markets. The amount raised in the final close fell short of the $1-billion target the firm set in its filings in late 2022.
The predecessor fund, RECAP V, closed in 2019 at $850 million, also fell short of its original target of $1 billion.
RECAP VI has attracted backing from a global mix of institutional investors, including sovereign wealth funds, corporations, and pension funds, per the announcement.
SC Capital Partners said the fund has already deployed more than 70% of the capital raised, with 44% allocated to Japan, primarily in the hospitality and data centre sectors.
RECAP VI’s portfolio includes 27 hotels in Japan acquired through Japan Hotel REIT Advisors, a majority-owned subsidiary of SC Capital Partners that specialises in local hotel asset management and operations.
The fund is also developing a data centre campus in Osaka, Japan, and a hyperscale facility in Bucheon, South Korea, through SC Zeus Data Centers, its in-house data centre platform.
Founded in 2004, SC Capital manages several fund families for opportunistic and core-plus real estate in the Asia-Pacific region as well as a yen-denominated strategy for hospitality assets in Japan.
“Despite ongoing challenges in global capital markets, we remain optimistic about the Asia-Pacific real estate sector,” said SC Capital Partners chairman and founder Suchad Chiaranussati.
In November last year, Singapore’s CapitaLand Investment announced that it will purchase a 40% stake in SC Capital Partners for S$280 million (about $214 million) to bolster its investment management capabilities.
The deal, which is funded through cash, is expected to close in the first quarter of 2025 upon receiving regulatory approvals.
CapitaLand is also investing at least S$524 million ($400 million) in SC Capital’s fund strategies to help grow its platform, which has S$11 billion in funds under management.
It will also expand into the J-REIT market where SC Capital is the majority owner of Japan Hotel REIT Advisors.
