NEW YORK CITY—Angelo, Gordon & Co. said Monday afternoon it had closed its latest Asia fund at approximately US$850 million. The largest to date of AG's funds devoted to investment opportunities in the region, AG Asia Realty Fund III exceeded its target by about US$100 million.

The new fund will seek to capitalize on value-add turnaround and development opportunities with a strong emphasis on Japan, South Korea, Hong Kong and China. It will purchase sub-performing assets that often require significant repositioning, lease-up or, in some cases, development to stabilize.

AG Asia Realty Fund III's predecessor funds, AG Asia Realty Fund II and AG Asia Realty Fund I, closed at US$616 million and US$526 million, respectively. The market response to the Asia fund follows on successful closings for AG's US-focused opportunistic and core plus funds, which brought nearly US$3.5 billion of new capital to the private equity firm's global real estate platform. When AG was preparing to launch the latest Asia fund, PERE reported in late 2013 that ”it is understood that more than half of the capital of Angelo Gordon's past funds have consisted of North American investors,” with the remainder fairly evenly been divided among investors from Asia, Australia, Europe and the Middle East.

“We are grateful for the strong support we received from new and existing limited partners to close our third fund,” says Wilson Leung, head of Asia real estate at AG. “We continue to see highly compelling real estate investment opportunities in Japan, Korea and Greater China and believe our deep, longstanding relationships with our local operating partners positions us well to generate attractive returns.” Since 1993, AG has invested around US$10 billion of equity globally in real estate deals, including US$1.9 billion of equity invested in 58 real estate deals in Asia since 2005.