Angelo Gordon strikes $1.3bn for target-busting Asia RE fund

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Credit and real estate investment major Angelo Gordon & Co has smashed its target for its latest Asia Realty Fund by hauling in $1.3bn for a final close.

The firm was initially hoping to collect up to $1bn for AG Asia Realty Fund IV, but easily passed that total thanks to commitments including $250m from the Minnesota Board of Investment.

The raise comes just four months after the firm bagged more than $2.75bn for the final close of its latest US real estate fund, AG Realty Value Fund X.

AG’s latest Asia fund has come in well above the $850m it gathered for its predecessor vehicle in 2016.

The firm said the fund would target value-add turnaround and development opportunities across major markets in Asia, with a strong emphasis on Japan, China, South Korea, and Hong Kong.

It will focus on sub-performing assets, which often require significant renovation, repositioning, and lease-up to stabilise, or pursue select development opportunities.

AG head of Asia real estate Wilson Leung said, “We continue to see a wealth of compelling investment opportunities in Asia, and the depth of our experience and strength of our network of local operating partners make us well-positioned to capitalize on those opportunities, improve asset performance, and drive value for our investors.”

The firm has committed more than $2.5bn in 83 Asian real estate deals since 2005.

Recent investments include the purchase of over $500m of logistics properties in Greater Tokyo and Osaka, a 600,000 square foot sale-leaseback office property in Beijing and the sale of two centrally located residential land sites in Seoul for about $300m.

The firm closed its last Asia real estate fund on $850m in 2016, and hauled in more than $2.75bn for the final close of its tenth US real estate fund.

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