The Chinese investment manager has raised $100 million for its maiden China-focused special situations fund.
see moreStarcrest Capital Partners, a Shanghai-based investment manager, has raised $100 million in the first close of its debut China-focused private equity real estate fund.
PERE has learnt that the firm has raised a third of the fund’s capital raising target from a total of eight investors. These include family offices, retail investors and other institutional investors.
Starcrest declined to comments on the fundraising.
The firm came to the market with Starcrest China Real Estate Fund II late last year targeting $300 million target, and a $400 million hard cap. The blindpool closed-ended vehicle, with a term of eight years, is US dollar-denominated and the fund corpus is to be invested in special situation deals across China. These would include investments in first tier cities either in the form of distressed asset buys, asset repositioning and refurbishing, or any other deal with a special situation angle.
PERE understands that the firm is anticipating to achieve a final close by June next year.
Starcrest was founded in 2010 by Elvin Lim, previously head of corporate finance for Asia at MGPA; David Yeung, who spearheaded real estate investments at Goldman Sachs’ special situations group; Leo Jia, former deputy chief executive officer of the Shanghai-headquartered property developer Super Ocean Group; Jeff Liu, who was previously a managing director for China for Angelo Gordon.
Since its inception the firm is understood to have made investments in a total of nine properties across China putting to work more than $300 million in equity. These include direct investments in office redevelopment projects, retail assets and joint venture residential projects funded on a deal-by-deal basis from high-net-worth individuals and family offices.
Atlantic Pacific is the placement agent for the fund.
The Hong Kong-headquartered private equity real estate firm will be investing in special situation opportunities via its maiden private equity real estate fund.
see moreHong Kong-headquartered private equity real estate firm Starcrest Capital Partners has launched its debut fund for China.
PERE understands the firm has set a fundraising target of $300 million and a hard cap of $400 million for Starcrest China Real Estate Fund II. The blindpool closed-ended fund, with term of 8 years, will be US dollar-denominated and the capital raised is expected to be invested in special situation deals across China.
An executive at Atlantic-Pacific Capital, the placement agent for the fund, told PERE the fund was officially launched in the beginning of October. A first close of around $100 million is expected to be held before the end of the year.
For the first close, the capital is due to be raised form the firm’s existing investors in other real estate projects; mostly family offices, high-net-worth individuals and corporates. Starcrest will coinvest “a substantial amount” as well. Following the first close, the firm plans to target investments from global and Asia-based institutional investors.
The capital is due to be invested in equity investments in the first-tier cities of China, with a special focus on Shanghai. Starcrest typically invests in special situation deals, which could involve distressed asset buys, or repositioning and refurbishing an asset.
According to the firm’s managing director Jeff Liu, the current softening in China’s real estate market has created opportunities for distressed buys. He further added that opportunities are also to be found in the asset dispositions coming out of a number of private equity real estate funds in the region that are in their exit phase.
Indeed, a paper published by CBRE last year, had estimated that around 50 private equity real estate funds raised between 2005 and 2008 are slated for termination by the end of 2015, unlocking approximately $40 billion of real estate in Asia.
Starcrest was founded in 2010 by Elvin Lim, previously head of corporate finance for Asia at MGPA; David Yeung, who spearheaded real estate investments at Goldman Sachs’ special situations group; Leo Jia, former deputy chief executive officer of the Shanghai-headquartered property developer Super Ocean Group; and Liu who earlier served as a managing director for China for Angelo Gordon.
Since its inception the firm has made investments in a total of nine properties across China, putting to work more than $300 million in equity. These include direct investments in office redevelopment projects, retail assets and joint venture residential projects funded on a deal-by-deal basis from high-net-worth individuals and family offices.
The Hong Kong-headquartered private equity real estate firm has made its fifth exit from China since the firm’s launch in 2010.
see moreHong Kong-headquartered private equity real estate firm Starcrest Capital Partners has exited its investment in a commercial office building in Beijing for around $200 million.
PERE understands that the China-focused fund manager has sold selected floors in the Beijing HP Building, a Grade B property located in the city’s core business district. The sale is understood to have been structured as a floor-by-floor share sale to capture the demand for strata offices in the city.
The deal has generated an IRR of more than 34 percent for Starcrest.
“From a private real estate investment perspective, this continues to be an attractive situation that has come to fruition as a positive outcome for all,” said Elvin Lim, managing director of the firm.
“We acquired the HP Building to capitalize on strong owner-occupied demand for CBD office space for single to multiple floors with limited supply of strata offices in the Beijing CBD submarket. Having completed our business plan to enter into a sale and leaseback program, and stabilize the rental yield, we took opportunity to sell the asset to investors seeking diversified and stable income”.
Starcrest had directly acquired selected floors of the property back in Jul 2013 for an undisclosed sum.
Since its inception in 2010, Starcrest has made investments in a total of nine properties across China, putting to work more than $300 million in equity. These include direct investment in office redevelopment projects, retails assets and joint venture residential projects.
Early last year, the firm acquired three office buildings in the Zhangjiang High-Tech Park in Shanghai for $90 million. PERE has reported at the time that the firm had acquired the properties from a domestic information technology company, with plans to refurbish them in order to attract high-quality tenants.
The firm has also been active selling assets and the sale of HP Building in the fifth exit made by Starcrest over the last four years.
Starcrest has founded by: Elvin Lim, previously head of corporate finance for Asia at MGPA; Jeff Liu who earlier served as a managing director for China for Angelo Gordon; David Yeung, who spearheaded real estate investments at Goldman Sachs’ special situations group; and Leo Jia, former deputy chief executive officer of the Shanghai-headquartered property developer Super Ocean Group.
Starcrest Capital Partners Has Successfully Acquired A Business Park Project in Zhangjiang High-Tech Park
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Starcrest Capital Partners has successfully acquired the National RFID Industrialization Base in Zhangjiang High-Tech Park, located in Shanghai’s Zhangjiang Riverfront Harbour. The business park project has an aboveground GFA of about 40,600 sqm, consisting of three independent office buildings ranging from five to eleven stories. Starcrest plans to upgrade the project for leasing following the acquisition. Colliers International has been appointed as the property manager of the project.
Founded in 2010, Starcrest is an independent private equity real estate investment management company focusing on real estate investment in the China market. Starcrest has office in both Hong Kong and Shanghai. To date, Starcrest has made real estate investments totaling more than RMB3 billion, including Xuebao High Street Retail Center on Huaihai Middle Road in Shanghai and HP Tower in Beijing’s CBD.