Angelo Gordon Raises $1.3B for Asia Fund

Osaka, Japan. Image courtesy of Zairon via Wikipedia

Alternative investment giant Angelo, Gordon & Co. has raised $1.3 billion in equity commitments for its latest Asia real estate fund, exceeding the vehicle’s original target of $1 billion. The fund, which draws on support from existing Angelo Gordon investors as well as new global institutional backers, will focus on value-add turnaround and development opportunities in East Asia.

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Angelo Gordon filed for AG Asia Realty Fund IV with the U.S. Securities and Exchange Commission last September. The company announced the fundraising milestone, which was initially reported by PERE. Commercial Property Executive has independently confirmed that $1.3 billion is the fund’s hard cap.

The New York-based firm, which manages $34 billion in assets, said that the fund will invest across major markets in Asia, with a strong emphasis on Japan, South Korea, mainland China and Hong Kong. The strategy will aim to purchase underperforming assets needing significant renovation, repositioning and lease-up or select development opportunities.

According to PERE, backers of the vehicle include the Minnesota State Board of Investment and Los Angeles County Employees’ Retirement Association, with each committing $100 million, as well as the Sacramento County Employees’ Retirement System and Seattle City Employees Retirement System.

A history in Asia

Angelo Gordon is one of the most active U.S.-based investors in Asia, having already committed more than $2.5 billion of equity in 83 real estate deals across the region since 2005. Major deals include the purchase of more than $500 million of logistics properties in Greater Tokyo and Osaka, Japan, spanning more than 2.7 million square feet.

The firm has also acquired a 600,000-square-foot office property in Beijing in a sale-leaseback deal and sold two residential land sites in central Seoul, South Korea for about $300 million. Angelo Gordon has reportedly completed eight deals through the latest Asia fund.

The vehicle’s predecessor fund, AG Asia Realty Fund III, closed in 2016 at roughly $850 million. In May of this year, Angelo Gordon held the final closing for its latest U.S. real estate-focused fund, AG Realty Value Fund X, at $2.8 billion.