Malaysia’s first private equity company to open its second-biggest real estate fund has raised more than $2 billion from Malaysia’s state-owned enterprises.
Alibaba’s first Malaysia investment fund, called Aladdin, was set up in March, and it is investing $2.6 billion in more than 10 properties.
The fund will invest in property in the Malay Peninsula, including five luxury condominiums and a shopping mall in Kuala Lumpur.
The Aladdin fund, which will hold assets worth $6 billion, will use the money to invest in investments in private companies, including private equity funds, said the investment company.
Aladdin, which was founded in Malaysia in 2013, has been looking for a partner for more than a year.
It is also the first private-equity fund to be listed on Nasdaq Singapore.
In September, the fund’s chief executive, Mohd Hishammuddin, told investors it has more than 100 investments in properties, according to The Straits Times.
Alison Grewal, head of global research at brokerage firm Nomura, said that the fund was aiming to raise around $10 billion in its first year of operations.
The fund is expected to be worth around $15 billion by 2021.
The IPO of Aladdin’s private equity fund comes on the back of the country’s government’s efforts to boost property ownership and to provide a financial lifeline to Malaysian households.
Last year, Malaysia introduced the new “Habakkad” property index, which ranks the countrys real estate market.
The index is based on a valuation method, known as the Hedged Property Index (HPI), which uses a variety of different valuation models to determine the value of properties, including a 10-year-old property that is valued at RM5.2 billion.
The value of property in Malaysia has been rising in recent years as property prices and the countryís infrastructure have been steadily expanding.
According to Aladdin Chief Executive Officer Hishamuddin, the company has also focused on building new real estate investments in the country, including in Kuala, Penang, Kelantan and Kedah.
He added that the company was also looking to invest more in property development in the United States, the United Kingdom, Australia and Europe.
“The value and the market is definitely in the right place,” he said.
“We want to invest here and help build up Malaysia’s real estate economy.”