CBRE Investment Management has announced the final close of its CBRE Global Special Situations Fund with $599 million of equity commitments, exceeding the fund’s $500 million target.
“The fund’s strategy is designed to take advantage of inefficiencies in capital markets and create unique opportunities for our investors through recapitalizations and GP-led secondaries. We are seeing a significant and growing opportunity within these execution structures that can enhance the opportunity set for investors while providing access to high-quality real estate and attractive risk-adjusted returns,” said Matt Tepper, Fund Manager for CBRE Investment Management.
The team has already deployed 70% of the fund’s capital across five investments providing exposure to European last-mile logistics, U.S. light industrial, U.S. single-family rental and U.S. self-storage.
“The fund allows us to expand our execution into the opportunistic return spectrum and take full advantage of our deep operating partner network. GP-led secondaries are becoming a more prominent execution path in private real estate markets globally, and we expect this theme to continue going forward. The fund’s existing portfolio demonstrates the team’s ability to generate opportunistic returns whilst remaining within our preferred themes,” said Achal Gandhi, CIO of Indirect Real Estate Strategies.
CBRE Global Special Situations Fund is a closed-end private real estate fund seeking to invest in situations where liquidity or capital constraints provide an opportunity to acquire high-quality real estate at an attractive basis.
The primary execution focus has been through participations in recapitalizations and partial interests in high-quality assets.