Keppel Capital Holdings, through its private fund management arm Alpha Investment Partners Limited (Alpha), has launched a US$1 billion fund for investment in multi-asset classes in Asia-Pacific. The Alpha Asia Macro Trends Fund IV (AAMTF IV) has achieved its first closing of US$295 million, including co-investment, the company said in a statement.
The fund has seen strong support from investors from the insurance, endowment and pension segments, the majority of whom are from Alpha’s existing investor base. Based on the target fund size of US$1 billion, when fully leveraged and invested, AAMTF IV is expected to have assets under management of up to US$2.5 billion.
AAMTF IV is the fourth value-add pan-Asian fund in Alpha’s flagship Alpha Asia Macro Trends series. The series, launched in 2007, focuses on mega trends underpinning long-term growth, which include urbanization, growing middle class and connected cities. Similar to its predecessors, the fund seeks to invest across key gateway cities in the region, including Singapore, Beijing, Shanghai, Tokyo, Seoul, Hong Kong, Sydney, Melbourne and Brisbane. Target asset classes include offices, business parks, logistic facilities, retail and accommodation assets.
Since 2004, Alpha has executed over 180 transactions with gross acquisition value of more than US$24 billion for its managed funds. This includes the June 2019 divestment of Meguro Villa Garden, an office property in Tokyo, for AAMTF III, the predecessor fund of AAMTF IV. The property was able to achieve 100% occupancy within two years at 20% above the underwritten rents, delivering an internal rate of return of about 70% and equity multiple of 2.5x, according to the statement.