Warburg Pincus reached final closing on the Warburg Pincus Real Estate Fund I, a US$1.2bn global fund that will be invested in real estate worldwide.
The investor base of WPRE I is comprised of institutional investors, including a number of long-term limited partners who have previously invested in Warburg Pincus private equity funds. Fifty percent of the fund’s assets will be invested in Asia, specifically in India and China in housing and commercial real estate sectors. Phil Riordan, senior managing director of GE Asset Management and an investor in the fund said; “We are excited about investing in Warburg Pincus’ real estate fund because we like the global focus, including the exposure it provides to markets such as China and other parts of Asia.”
The remaining 50% will be invested in the US and Europe and will target senior housing, resort development and distressed opportunities. In Europe the fund will also focus on housing and commercial real estate across the region, including Central and Eastern Europe.
Joseph Landy, co-president of Warburg Pincus said: “Real estate investing has been a focus area for us for more than 20 years, so I’m particularly pleased to be able to announce the close of this dedicated fund. We’ve moved to establish a separate fund for our global real estate investment activities at a time when the firm has seen its proprietary real estate deal flow increase substantially around the world.”
Michael profenius, a Warburg Pincus managing director and a partenr in the firm’s global real estate practice, said: “WPRE 1 combines our real estate experice and private equity investitn experise with a stron, dedicated capital base. This enables us to take advantage of attractive real estate opportunities and the team is actively prusuing numberous transactions in the global market.”
Over the last two decades Warburg Pincus has invested US$1bn in real estate and real estate-related transactions. The firm’s investments have spanned sectors such as homebuilding, retail, senior housing, lodging, self-storage, land development and real estate services in North America, Europe and Asia.