Sanmukh

Citigroup Inc.'s property unit said it raised $1.29 billion for its first fund to invest in real estate and related assets in the Asia-Pacific region, with a focus on China and India.

Citigroup, the largest U.S. bank, and its investment professionals committed $200 million to the fund, CPI Capital Partners Asia Pacific LP, according to a statement from the New York-based bank. The fund will be managed by a Hong Kong-based team of more than 25 employees led by managing director David Schaefer. About 40 percent of the fund has been invested or pledged already.

citigroup also announced yesterday that it plans to raise $3.5 billion for a fund to invest in companies in emerging markets such as India, China, Estonia and Chile.

Citigroup will commit $1 billion to the fund, called Citigroup Venture Capital International Growth Partnership II LP, and expects to raise the rest from employees and clients, according to a marketing brochure.

Asia is a compelling market for private equity real estate investments,'' said Joseph Azrack, 59, president and chief executive officer of Citigroup Property Investors, in a statement.