The Warburg Pincus Asia Real Estate Fund is the second-largest fund dedicated to the sector in Asia, according to data provider Preqin. Blackstone Group raised $7.1 billion in the region’s largest real estate fund in 2018, the data showed. The fund will focus on investing in asset-level, technology-enabled or technology-driven real estate opportunities in Asia. The fund will focus on areas such as logistics, data centers, IT offices, life science parks, and multifamily real estate. It will also invest in the repositioning of underperforming or obsolete real estate assets and those in special situations.
Warburg’s real estate fundraising comes as an increasing number of global private equity managers seek to diversify in Asia. U.S.-based KKR & Co in January closed its first real estate fund at $1.7 billion. Blackstone is aiming to raise $9 billion in its third and largest Asia real estate fund. Warburg’s inaugural Asia real estate fund exceeded its initial target of $1.5 billion and hard cap of $2.5 billion because of strong demand. The firm has been in Asia real estate sector for more than 15 years through its main global funds and China- and Southeast Asia-focused companion funds, with over $6.5 billion invested in more than 40 real estate ventures.