CBRE Global Investors has announced the final closing of CBRE Strategic Partners U.S. Value 9, L.P., the firm’s largest value-added fund to date, with equity commitments of $2.3 billion to the fund and its co-investment vehicles from 23 institutional investors in the United States, Europe, the Middle East and Asia.
The fund, which exceeded its capital-raising target, is now closed to new investors. The fund and its co-investment vehicles are expected to have total purchasing power of $5.6 billion, including leverage, and have already invested or committed 22 percent of this amount, or $1.2 billion, in 12 high-quality, primarily newly built logistics, residential and office assets in resilient, research-favored markets.
The fund is a continuation of CBRE Global Investors’ ﬂagship U.S. enhanced return program, with an established strategy and proven track record of outperformance during periods of market resets.
The value-added strategy targets early-cycle growth opportunities in expansion markets and dislocation in mature markets. The investment team is actively screening opportunities consistent with this strategy.
“The current environment is likely to accelerate the fund’s original decoupling thesis, creating investment opportunities as properties experience situational stress,” said Robert Perry, Portfolio Manager for the fund. “We expect an uneven recovery across markets and property sectors that we believe will create opportunity for our investors.”
“As investor-operators using proprietary data, analytical tools and operating programs, we understand and can execute on all aspects of an asset’s life cycle, from investment strategy and sourcing to enhancing the occupier and user experience to drive leasing and occupier/resident retention, which will ultimately drive value,” said Diann Hsueh, Deputy Portfolio Manager. “We thank all of our investors and their consultants for the continued confidence they have placed in us through their commitments to this latest fund.”
The Strategic Partners U.S. program has raised $11.8 billion in equity in 15 funds and co-investment vehicles since inception.