13 November 2006
Macquarie Global Property Advisors (MGPA), a private equity real estate fund advisory company, has announced the final closing of MGP Japan Core Plus Fund with commitments of US$865 million. The Fund was over subscribed by more than US$300million.
MGPA’s CEO Jim Quille said, “The strong demand for this fund is a reflection of investors’ confidence in the expertise and experience of MGPA, our proven track record in Japan and investors’ appetite for continued exposure to the recovering Japanese real estate market.
“We had more than US$400 million of equity commitments from investors that we couldn’t take into this Fund which parallels the experience we had when closing our global offering, MGP Fund II, in September 05.”
The Fund has commitments from 22 investors based in Australia, Switzerland, Netherlands, Sweden, Ireland, Germany, the UK and Denmark, seeking exposure to the Japanese real estate market. The Fund is focused on core plus real estate investments throughout Japan and has a targeted net return of 10-12 per cent per annum. The Fund will be investing in office, residential, retail, industrial and logistic sectors throughout the country and will have a buying power of US$2.5 billion.
MGPA’s first global fund acquired 10 office properties in Japan and MGP Fund II, which closed in September 2005, has already acquired 13 properties in Japan, covering the office, retail and residential sectors in Greater Tokyo, Kanazawa and Sapporo.
MGP Japan Core Plus Fund has already successfully completed its first acquisition of a 13 property portfolio for JPY9.25 billion (approximately US$80.8 million). The portfolio consists of nine residential and four office properties located in four cities throughout Japan in greater Tokyo, greater Nagoya, Fukuoka and Hiroshima. The properties have a combined gross floor area of 27,328 square metres.
Ken Curtis, Managing Director of MGPA’s Japan subsidiary said: “This is an attractive first investment for the Fund providing an opportunity to acquire assets in both primary and secondary Japanese markets. Each property is well-located within its market and will allow the Fund to capture the value accruing from increasing occupier demand in these locations.
“The outlook for the property market in Japan remains strong on the back of a solid economic recovery and we are looking to capitalise on opportunities arising from this exciting market.”
“We see demand picking up across all sectors, particularly the leasing of office and residential properties, not only in Greater Tokyo, but also major regional centres of the country. We will continue to leverage our core competency of turning acquired properties into investment grade buildings through refurbishment,” said Mr Curtis.
Notes to Editors
Macquarie Global Property Advisors is a private equity fund management group focused on real estate investment in Asia and Europe.
Through its headquarters in Bermuda and network of offices in Hong Kong, Tokyo, Seoul, London and Luxembourg, MGPA manages US$4.0 billion in assets in Hong Kong, South Korea, Japan, China, the United Kingdom, Italy, the Netherlands, Belgium, Switzerland, France, Poland and Germany. Its managed investments include development and re-development projects, joint-venture investments and real estate operating companies in the office, retail, warehouse and logistics, residential and hotel sectors.
Owned by its Principals and Macquarie Real Estate part of Macquarie Bank Limited’s Banking and Property Group , a pre-eminent Australian bank providing investment banking and financial services, MGPA was formed in February 2004 as the result of a management buyout from Lend Lease Corporation of its Global Fund investment advisory platform.
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