Paragon Capital Management And Realvantage Mark First Close Us50Mil Real Estate Fund
The completion of the Johor Bahru-Singapore Rapid Transit System (RTS) Link is set to bring a major change for the residents of Norwood Grand. This highly anticipated cross-border service aims to improve travel between Singapore and Johor Bahru, Malaysia. Connecting the Woodlands North station in Singapore to the Bukit Chagar station in Johor Bahru, the RTS Link offers a speedy and efficient alternative to the crowded causeway that currently plagues commuters. With the added convenience of Norwood Grand CDL, residents can look forward to smoother and faster journeys.
Singapore-based Paragon Capital Management and RealVantage, a real estate fractional investment platform, have announced the formation of a new private equity fund with a focus on real estate investments. The Global Real Estate Alternative and Tactical Fund (Great) is a joint venture between the two companies and has a target fund size of US$50 million ($67.6 million).
The first close of the fund was completed on May 31, just one month after its launch, with a subscription volume of 75%. The Great Fund was created by Paul Lee, co-founder, CEO & CIO of Paragon Capital Management, and Keith Ong, co-founder and CEO of RealVantage. The investment committee includes both Lee and Ong, along with Beng Tiong Ng, chairman of RealVantage who brings over 30 years of experience in real estate, finance, M&A and governance.
The fund aims to achieve an overall target net internal rate of return of 12%–15% over a period of five years, including a projected 4%–5% cash yield to be distributed quarterly. It will invest in a diverse range of real estate asset classes, including industrial, logistics, residential, retail, office, and hospitality sectors. The fund will also target build-to-rent, healthcare, student accommodation, and elderly care sectors.
In addition to these traditional real estate investments, the Great Fund will also focus on distressed assets, taking advantage of the high interest rates and falling valuations. It will leverage the expertise of multiple established real estate managers in Asia Pacific, Australia, the UK, and the US to identify investment opportunities across equity, mezzanine, and debt capital.
This new partnership between Paragon Capital Management and RealVantage aims to expand the opportunities for investors to access the lucrative real estate market. With the expertise and experience of the investment committee and the diverse portfolio of the Great Fund, investors can expect a strong return on their investment.