HONG KONG, Nov 18 (Reuters) - Asia private equity firm RRJ Capital, founded by former Goldman Sachs dealmaker Richard Ong, is launching an up to $1 billion real estate fund that will mostly target investments in China, a person with direct knowledge of the matter said.

RRJ's new fund, which is initially seeking $500 million, will focus on residential, retail, hospitality and care homes for the elderly, and is expected to close in the first quarter of next year, the person said. The fund will target a 25 percent to 30 percent return on investment.

RRJ declined to comment and the person was not authorised to speak to media.