Actis achieves $700m closing for Asia Real Estate Fund 2
Following a string of data center and logistics deals, fund manager Actis has secured a final close of $700 million for its second Asia real estate fund, targeting new economy investments in emerging markets across the region.
The London-based private equity firm has returned just over 93 percent of its $750 million target nearly three years after the launch of Actis Asia Real Estate Fund 2 in 2019. It expects additional co-investments that could bring the vehicle’s total equity to $1 billion, according to a press statement late Wednesday.
“Due to our deep understanding of micro-market dynamics, our focus is on delivering institutional-grade cash flow by matching demand – driven by emerging economic sectors – for logistics, industrials, specialty offices and urban repositioning,” said Brian Chinappi, Partner and Lead from Actis’ real estate business. “We believe values add value – by embracing sustainability leadership in our investment approach, we ensure our assets are future-proof and future-proof.”
With a focus on real estate assets across China, South Korea, India and Vietnam, which benefit from growth in tech-driven industries, Chinappi told Mingtiandi that his team has already acquired two data centers in Korea, a pipeline of logistics projects in China and another industrial development in North Vietnam in the name of strategy.
Approximately US$350 million of the capital raised for Actis Asia Real Estate Fund 2 has already been invested in projects spanning the industrial, specialized office and data center sectors.
In 2020, Actis acquired its first data center development project in Korea through a $315 million joint venture with construction company GS E&C. This 26MW project in the Seoul metropolitan area was followed by the acquisition of a data center location in the heart of Seoul for a facility expected to be operational in the second quarter of next year, providing a total of 50MW of capacity across the two sites.
On the logistics side, the company formed a US$200 million China joint venture with Warburg Pincus-backed New Ease (now part of DNE Group) in 2020 to complete three logistics projects in the cities of Chongqing, Tianjin and Quanzhou in mainland China to develop Fujian Province.
In Vietnam, the fund manager partnered with local green plastic producer An Phat Holdings for a $250 million industrial park project in June last year. The partners are developing a 180-hectare (445-acre) industrial park within the country’s Northern Key Economic Zone to provide ready-built workshops and warehouses for rent as Vietnam becomes a manufacturing base of choice.
“Conducted during challenging times, this fundraiser is a strong endorsement for our real estate business and enables us to continue to develop and operate sustainable assets in the world’s most dynamic cities,” said Neil Brown, Partner and Head of Investor Development Group at Actis. “We look forward to continuing to invest in real estate that enables the new economy while having a positive impact on the countries, cities and communities in which we invest.”
Chinappi has expressed satisfaction with the volume of capital raised through support from both existing and new investors, with an SEC filing last November reporting that the strategy had raised $251 million in commitments just five months ago .
The American real estate consultancy Hodes Weill advised Actis on the financing.
The fund’s final close comes as Actis expands its Asia Pacific team through a series of promotions and hires, including the opening of its Japan office last week, led by former Macquarie Capital executive Jun Ohashi.
The fund manager said he plans to invest nearly $500 million in Japan over the next four to five years, with energy transition assets and new economy real estate as the main targets.
In the same announcement, Actis said it hired former Macquarie Capital manager Tareq Sirhan to run its energy businesses in Japan, South Korea and Taiwan and promoted six partners to senior positions.
The UK-based fund manager has raised $24 billion since inception, with public pension funds, development finance institutions, private pension plans and sovereign wealth funds being the largest investors.