Frogmore has tapped into east Asian capital for the first time, raising £50m for its latest value-add fund.
The investor and private equity fund manager has secured the cash from three investors, including a South Korean family office. The total amount raised for the vehicle is now £150m.
This marks a break with tradition for Frogmore’s 19-year-old fund management business, which has typically received around 75% of its capital from North American investors and the remainder from European clients.
A final close, which will take the total equity raised for Frogmore Real Estate Partners III to £350m, is slated for the end of 2014.
According to a source close to the company, Frogmore intends to continue raising capital from east Asia for the vehicle. This would see it emulate rival asset managers such as Rockspring, which has successfully been tapping into Far Eastern investors including the National Pension Service of Korea.
FREP III will build up a balanced portfolio of UK assets over four years. It will be geared to around 60% and target an IRR in the mid to high teens. The fund has yet to make its debut acquisition, but it is understood to be in due diligence on two properties. Investors in the £90m first close in September last year include the California State Teachers Retirement System, which committed around €64m (£50.9m).
sophia.furber@estatesgazette.com
