Japanese investment conglomerate Mitsui Group and German infrastructure firm PATRIZIA have launched an Asia Pacific sustainable infrastructure fund with a fundraising target of US$1 billion.
The fund will invest in sustainable infrastructure assets in key developed markets in the region, including Australia and Japan, and in some Asian developing markets.
It will primarily focus on mid-market brownfield opportunities in four core sectors: energy, digital, social, and mobility, targeting assets such as solar and wind farms, PATRIZIA says in a statement on January 18.
The fund will be managed by a joint venture between the firm and Mitsui. The ownership structure of the joint venture was not disclosed.
According to the German firm, each of the fund’s investment will “aim to deliver strong financial returns alongside positive sustainable outcomes in line with the United Nations’ Sustainable Development Goals”. The goals include affordable and clean energy, clean water and sanitation, and gender equality.
“With this new launch, we are offering our largest-ever infrastructure strategy in Asia Pacific that delivers much broader investment opportunities across the entire real assets sector,” Graham Matthews, chief executive officer of PATRIZIA Infrastructure, says in the statement.
Augsburg-based PATRIZIA has 7 billion euros ($7.55 billion) of assets under management.