The Paine Lake Asia Fund is seeking to raise US$500 million for a new value-add fund that will acquire hospitality assets in Japan and Thailand.
The Paine Lake Asia Fund will be domiciled in the Cayman Islands. Acquisitions in Japan and Thailand will be leveraged with capital from local banks and/or other lenders. Paine Lake's Limited Partners are projected to receive an annualized IRR (achieved over ten years) of more than 14% (Updated February 2023).
Terms and conditions will apply (see Legal Advisory below).
Fundraising will be led by Brian Keegan, a founding General Partner and a former Managing Director of both JP Morgan and Bank of America Merrill Lynch.
The Paine Lake Asia Fund will be seeking 3-4 star hospitality assets, with an ideal size of 200 keys (rooms). Properties can be hotels, resorts, serviced apartments, co-living or other furnished lodging that would be classified in Costar STR data as Upper Upscale, Upscale or Upper Midscale. Paine Lake will seek locations in Tokyo, Osaka, Nagoya and Fukuoka in Japan; as well as Bangkok, Chiang Mai, Phuket, Koh Samui and Pattaya in Thailand.
"The Paine Lake Asia Fund is a stable vehicle to invest in Asian hospitality real estate assets," says Robert Philips, one of the founding partners. "Paine Lake has an experienced operations team in Japan and Thailand that can execute the value-add and achieve our financial targets. Tourism and business travel to these countries has rebounded dramatically."
Paine Lake's Limited Partners will also have an opportunity to invest during a period where the US dollar has remarkable strength.
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