InfraRed Capital Partners, the global investment manager focused on real estate and infrastructure, has reached a final closing of its latest Asian real estate fund, InfraRed NF China Real Estate Fund II (‘China II’ or ‘the Fund’) with total equity commitments, including committed co-investment, of US$360m. With the associated leverage envisaged for its strategy, China II has an investment capacity of approximately US$600m.
The Fund is managed by a joint venture between InfraRed Capital Partners and the Nan Fung Group, a prominent Greater China-focused real estate owner, operator and developer. The joint venture, known as InfraRed NF, was established in 2006 and designed to capitalise on the synergies created by InfraRed’s investment management and governance experience with Nan Fung’s development expertise and local relationships. InfraRed NF has since established itself as a leading Greater China-focused real estate investment manager having completed 23 transactions in mainland China with a value of US$3.6 billion.
Werner von Guionneau, Chief Executive of InfraRed Capital Partners, said:
“The extremely rare combination of local expertise and track record, access to deal flow and strong process and governance embedded in the InfraRed NF platform has provided China II with the critical ingredients for a strong start. The underlying business model is proven and extremely well-positioned to capture opportunities in Greater China for its investors.”
China II will focus on high yielding mezzanine loans secured on Chinese real estate as well as continuing its direct value-add investment strategy within the office, logistics and retail sectors in Tier 1 cities of mainland China and Hong Kong. The Fund has already committed more than 40% of its capital into three mezzanine investments.
Stuart Jackson, Head of Asian Real Estate for InfraRed, noted:
“Having returned substantially all of our investors’ capital from our first Chinese real estate fund, we are pleased to have closed China II at a respectable size in a challenging fund raising market for pure plays on Chinese real estate.”