Japan-based Secured Capital, the real estate arm of private equity firm PAG, has raised $1.5 billion for investments in Asia, primarily targeting distressed real estate and debt opportunities in Japan.
"We believe that the Japanese debt market provides some of the best risk adjusted returns globally as a result of a large opportunity and a limited availability of capital," J-P Toppino, president of Secured Capital and managing partner of PAG Real Estate, said in the announcement.
Since the fund began raising capital in late 2011, it has completed 11 transactions for a total value of $1.8 billion, including deals in Japan, Korea and Australia.
In August, Secured Capital joined other investors to purchase a Tokyo office building for $1 billion, one of the largest deals this year, Reuters reports. Since its inception in 1997, it has more than $9 billion of property assets under management, according to the company.