Hong Kong and Singapore-focused private equity real estate firm Pamfleet Group has added to the coffers of its second value-add property fund.
The firm has brought fundraising for its Pamfleet Real Estate Fund (PREF) II to $215 million, adding $60 million to a $155 million first closing held last June.
Pamfleet originally set a $350 million capital raising target for the vehicle, however PERE understands that the firm is expecting to hit its hard cap of $400 million when it holds a final closing in June.
Thus far, Pamfleet has raised capital from seven LPs including pensions, life insurers, funds of funds and family offices. It is understood the majority of the LPs that have committed capital so far are repeat investors from the firm’s first fund, Pamfleet Real Estate Fund, which closed in 2012 on $209 million.
That fund was invested into seven transactions, six in Hong Kong and one in Singapore. The investments are understood to be tracking an IRR of more than 20 percent, a performance that has encouraged consultants to include the firm on an approved list of managers and which has led already to two new investors committing capital.
Pamfleet’s investing strategy revolves around acquiring secondary assets and repositioning them with a view to seeing them better occupied or occupied by tenants willing to pay higher rents.
While the firm is 15 years old, it came to the fundraising arena relatively late on in its evolution having spend the best part of a decade transacting on a deal by deal basis.
It was formed in 2000 as a management buy-out of Hong Kong investment bank Jardine Fleming’s direct property fund management business and found early business as the operating and investment partner for other property funds. Indeed, it is understood to have racked up $1 billion of investments in its target markets of Hong Kong and Singapore before determining to go it alone and raise its own fund.
The firm’s current capital raising efforts are being aided by California-based placement agent CrossCon Real Assets Capital.
Published: 14 January 2015
By: Jonathan Brasse