Charlotte D'Souza
Despite the lack of deal volume and build-up of dry powder in the sector, there remain parts of the market where borrowing needs are not being met.
Gaining significant exposure to real estate credit was also a key draw, according to global co-head of real estate Karim Habra.
At a size of $1.4bn, ACORE Credit Partners II is also the joint fourth-largest private real estate fund closed globally so far this year.
Historical trading activity and higher-than-average investor allocations have brewed a 'perfect storm' in the country's real estate market.
The US-based manager said recapitalisations can help borrowers bridge funding gaps and hold on to good assets until the market turns.