MGPA raised €85m at the first close this month of its core-plus Asia fund for German investors. Three German institutions made commitments to MGPA Asien Spezialfonds, which will focus on developed markets such as Japan, Australia, Hong Kong, Singapore and Malaysia. MGPA is using the KAG platform of Universal-Investment to provide the regulated fund structure for the spezialfonds.
“The most interesting markets now for low-risk real estate returns are in Japan, Australia and Hong Kong,” said John Saunders, MGPA’s Asia CEO. The fund will pay annual distributions and target longer-term capital growth. Selinus Capital helped raise the capital and is exclusive distribution partner for the fund. The target equity capital is €500m.