SC Capital Partners taps into the Japanese real estate NPL market

TOKYO, 29 November 2021

SC Capital Partners Group, a Singapore-headquartered private equity real estate firm, has acquired a portfolio of real estate non-performing loans (NPLs) in Japan on behalf of its latest closed-end opportunistic fund, Real Estate Capital Asia Partners V (RECAP V).

The portfolio, which was acquired from a regional bank, is collateralised mainly by residential assets, which are largely located in and around Osaka.

Through exposure to these underlying assets, RECAP V is able to take advantage of the strong residential market in Japan, which has experienced large capital inflows from both domestic as well as foreign investors.

The latest acquisition is a continuation of RECAP V’s investment strategy within the growing Asia Pacific real estate credit market, having recently executed two other credit deals in the region.

On the possibility of pursuing credit opportunities in Asia Pacific for both RECAP V as well as its follow-on funds, Suchad Chiaranussati, Founder and Chairman of SC Capital Partners, commented, “We’ve been seeing an increasing number of opportunities in the real estate debt segment across the region, especially due to the volatility brought by COVID. As value investors, we will be looking at various forms of credit, including non-performing loans and mezzanine loans.

The off-market purchase of this specific NPL portfolio is testament to SC Capital Partners’ strong network in Japan. Our deal sourcing capabilities and deep relationships within the Japanese market give us unique access to attractive opportunities.”

RECAP V, with a 2017-vintage, has deployed most of its capital in Australia, China, Japan and South Korea, executing on 23 transactions to date.

END