January 6, 2021 – Private equity real estate firm SilkRoad Property Partners today announced the final close of its latest real estate fund, SilkRoad Asia Value Partners II (SAVP II), at US$549 million, well in excess of its US$500 million target. SAVP II is the third value added fund managed by SilkRoad Property Partners since its establishment in 2012. With this fund, SilkRoad has now raised and managed US$1.58 billion of equity in their successful value add series.
Following on the successful deployment of its predecessor fund, SAVP II achieved its first closing in Q4 2018. Capital raising was disrupted by the pandemic; the fund raising period was extended with the unanimous support of the fund’s investors, which include insurance companies, endowments, pension funds and other top-tier investors from Europe, North America and Asia. Many of these investors also committed to the two predecessor funds.
The newly closed SAVP II will employ a proven value-add investment strategy with a strong track record through cycles, targeting real estate assets that have favourable risk-return profiles in primarily Singapore, Hong Kong and the Greater Bay Area, Shanghai, Beijing and Tokyo. SAVP II has already made six investments primarily in pandemic resilient sectors such as industrial/logistics and neighbourhood retail.
Peter Wittendorp, CEO of SilkRoad Property Partners, said, “We are very grateful to our investors, many of whom have supported us since our business began, and all of whom have supported us through this challenging year. We believe this is a testament to our commitment to our fiduciary duty, execution capabilities and proven track record. Our returns have been generated through active value creation, with very modest usage of leverage.”
He added that such a “classic” value-add strategy in Asia has found a permanent place in the portfolios of international institutional investors looking to diversify their exposures while maintaining strong returns with modest risks through cycles. He pointed to the successful divestment of one of its assets in Singapore just last month that exceeded its underwriting return despite being sold in the midst of a pandemic.