The Pacific Alliance Group, a Hong Kong-based hedge fund and private equity manager with $3.5 billion in assets, is launching a Greater China real estate vehicle, adding to its existing portfolio of Asia-focused vehicles. The firm has listed the Pacific Alliance China Land fund on London’s Alternative Investment Market, raising $400 million (€270 million). The property fund sold 400 million shares at $1.00 each.
The fund will invest in residential, commercial and industrial properties in China, with approximately 60 percent of the fund being invested in second and third tier cities such as Hangzhou, Suzhou and Chengdu. The remainder of the fund will be invested in larger cities like Shanghai, Xian, Dalian and Macau, where the firm says it already has a pipeline of deals.
According to the firm, the fund will focus on acquiring incomplete and completed buildings, co-investing with leading developers and taking pre-IPO stakes in emerging developers.
The Pacific Alliance Group's other AIM-listed funds include the Pacific Alliance Asia Opportunity Fund – an arbitrage hedge fund focusing on Greater China, ARC Capital Holdings – a $570 million Greater China buyout fund, the Vietnam Opportunity Fund and VinaLand, a Vietnam-focused real estate fund listed in March 2006.
The new fund will have a dedicated team lead by Pat Boot, who previously oversaw the start up of ProLogis’ China business, where he was responsible for creating a portfolio approaching one million square meters of completed property.
Pacific Alliance was founded by Horst Geicke in 2002.