Citigroup closes $1.3bn Asian property fund

Citigroup Property Investors has closed on its Asia Pacific real estate fund on $1.3bn, including a $200 million commitment from the financial services giant.

Citigroup Property Investors (CPI), the private equity real estate arm of US financial service company Citigroup, announced the final close of CPI Capital Partners Asia Pacific, a $1.3 billion (€991 million) fund that is focused on property and real estate-related assets throughout the Asia Pacific region, with a particular focus on China and India.
“We received strong investor interest for the fund,” Joseph Azrack, president and chief executive officer of CPI, said in a statement. “Asia is a compelling market for private equity real estate investments and the CPI Asia Pacific team is well positioned to find appropriate opportunities in the region.”

The firm’s Hong Kong-based investment team, led by managing director David Schaefer, has already invested 40 percent of the fund, according to a press release. Citigroup also contributed $200 million to the vehicle, the statement said.

In December, CPI closed its European property fund on €1.2 billion to invest in real estate on the Continent. That fund has a primary focus on Western Europe, including Germany, and a secondary focus on growth markets in Central and Southern Europe.

Before the final close, the fund had made a number of investments including a €250 million minority stake in Deutsche Annington, the largest private owner of German residential property. Citigroup was a co-investor alongside UK private equity firm Terra Firma, which purchased the portfolio in 2005.

Citigroup committed €200 million to its European property vehicle.