CBRE IM raises US$1.74bn for Asia value-add fund

CBRE IM raises US$1.74bn for Asia value-add fund

CBRE Investment Management has raised US$1.74 billion for its sixth pan-Asia value-add fund, CBRE Asia Value Partners VI(AVP VI).

”This exceeds the initial target for the fund of US$1.2 billion and together with additional firm co-investments expected to be finalized shortly, represents the fund’s hard cap,” said CBRE IM in a press release.

“We are honored by the continued support from our existing partners as well as new clients who have shown confidence in our team even when due diligence was limited to virtual formats amid international travel restrictions,” said Bernie McNamara, CBRE Investment Management Global Head of Investor Solutions.

“The strong fundraising momentum of AVP VI underscores the continued need for high-quality logistics in clients’ global portfolios, the attractiveness of our Asia Pacific investor-operator model and our proven track record, particularly in the logistics sector,” he added.

”Logistics investments will continue to be the central focus of the fund’s strategy, with at least 80% of equity commitments to be deployed towards the sector. The fund may also selectively invest in other sectors exhibiting attractive risk-return profiles. Including leverage, the fund will have purchasing power in excess of US$4 billion to be deployed over a 36-month investment period. Capitalizing on a deep network of relationships in Asia Pacific markets, the team has identified a robust pipeline of opportunities and expects to complete its first investments before the end of the year,” said the company.

Commenting on the logistics-focused strategy, Shane Taylor, CBRE Investment Management Head of Real Assets Research – Asia Pacific noted, “Even as the world progresses towards a post-pandemic recovery, structural themes favoring modern logistics will continue to advance. Digital transformation and e-commerce adoption are expected to outlast the pandemic. Logistics occupiers are demonstrating their commitment to longer-term expansion plans with leasing enquiries and pre-commitments to facilities yet to be completed. The current Asia Value Partners portfolio has seen evidence of this, with assets receiving leasing interest aggregating to multiples of planned leasable area.”

“Our team’s expertise and skill sets equip us to bring competitive solutions to the region’s logistics real estate industry during this next phase of growth. We recognize that ESG is a key lever for value addition and creating future-proof assets. Our suite of in-house operating capabilities means we are able to take into account a broad scope of ESG considerations – from design, construction and certification of new buildings to ongoing management of energy consumption with our tenants. We will continue to seek to execute on a strong deal pipeline and create another portfolio of high-quality assets that will be highly sought after by occupiers and investors alike,” said Adrian Baker, CBRE Investment Management Portfolio Manager for the fund.