Actis' Asian logistics, data center fund draws $100 mn from Korean institutionals

Korea Scientists & Engineers Mutual-Aid Association (SEMA) and other major Korean institutional investors will invest $100 million in a market-specific investment fund run by Actis, a U.K.-based leading investor in growth markets.

According to investment sources on Sunday, Actis is planning to raise a $650 million fund named Actis Asia Real Estate Fund II (AAREF Ⅱ), and SEMA will be responsible for $50 million, half of the contributions set for Korean investors.

AAREF Ⅱ will invest in real estate assets in Asia including logistics centers and data centers in Korea, China, Vietnam and India. The fund’s target yield is about 15 percent from its investment in key property assets in Asian growth markets.

London-headquartered Actis spun off from Commonwealth Development Corporation (CDC) in 2004 has been dedicated to real estate infrastructure investment in growth countries. Its fund return is known to be about 23 percent. In 2017, it acquired real estate investment business from Standard Chartered Private Equity in 2017 to strengthen its presence in Korea and other Asian markets.

AAREF Ⅱ is already preparing for two hyperscale data center projects in Korea. Actis completed land purchase and regulatory filings for the construction of three data centers in Korea. Construction is underway under a total investment cost of $1.27 billion, with a goal of completion between the fourth quarter of 2023 and the first quarter of 2024.

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