Castleforge partnership, Catenary Capital, raises £100 million SMA to invest in Malaysian, UK and European real estate

London-based real estate investment firm Castleforge selected as global co-general partner under KWAP’s Dana Pemacu initiative. Castleforge’s partnership with Foster Capital to form Catenary Capital brings institutional investment expertise to Malaysia’s private real estate market.

London-based real estate investment firm Castleforge announces the formal launch of Catenary Capital Sdn Bhd (“Catenary Capital”), a new Private Equity Real Estate (PERE) manager, based in Malaysia, established in partnership with Foster Capital Sdn Bhd (“Foster Capital”).

Catenary Capital has been formed under Kumpulan Wang Persaraan (Diperbadankan) (KWAP)’s Dana Pemacu initiative, a Malaysian government-linked programme designed to catalyse private market investment and support the development of domestic investment capabilities.

Catenary Capital is registered with the Securities Commission Malaysia and has been created to manage and invest institutional capital into selected real estate sectors. Its initial separate managed account with KWAP is for MYR 500 million (£100 million) with a mandate to invest in Sharia-compliant real estate opportunities in Malaysia and internationally.

Participating as global co-general partner, Castleforge will provide strategic oversight, investment and operating platform experience, working alongside local Malaysian partner, Foster Capital.

Catenary Capital reflects a shared ambition between Castleforge and Foster Capital, working with KWAP, to raise governance and operational standards in segments where institutional participation has historically been limited, while supporting Malaysia’s broader ambitions to attract global capital and best practices into its private markets.

Michael Kovacs, Founding Partner of Castleforge, said: “Malaysia presents a compelling long-term opportunity, both for inward investment and outbound capital flow into European real estate markets. The Dana Pemacu initiative reflects a serious commitment to further develop our relationships with institutional investors in the region.

Our role as global co-GP is to bring the investment framework and operational discipline we have developed over 15 years in the UK and Europe, applying the same value-add approach that has underpinned our portfolio to a new and dynamic market.

We look forward to working alongside our Malaysian partners to build a scalable, best-in-class platform.”

Hizzan Hamid, Founding Partner of Foster Capital, said: “Malaysia’s real estate market is at an inflection point. There is growing appetite from institutional capital, and a clear need for investment platforms that combine local market knowledge with global governance standards. Our partnership with Castleforge through Catenary Capital brings both, and positions us to build something genuinely differentiated.”

The launch follows a period of significant momentum for Castleforge. The firm is currently delivering over one million square feet of Grade A office space across the City of London, including its flagship 500,000 sq ft redevelopment at 75 London Wall and One Golden Lane – the latter set for completion in Q2 2026.

In September 2025, the firm secured an initial £150 million commitment from Conversant Capital for Castleforge Partners V, its Central London office strategy.

For more information, visit the Catenary Capital website or contact Castleforge.