Neuberger Berman arm invests $320m in Asia Capital Real Estate

Neuberger Berman arm invests $320m in Asia Capital Real Estate

Asia Capital Real Estate (ACRE), a global real estate private equity firm, has obtained a $320 million capital commitment from a fund managed by Almanac Realty Investors, the private real estate investment arm of Neuberger Berman.

ACRE aims to invest over $2 billion through its upcoming private equity funds, and has already deployed over $300 million in loans, with the support of Almanac and other investors.

“We’re very pleased to have an asset management firm as prominent as Neuberger Berman invest in ACRE with a commitment of this magnitude and equally honored to partner with Almanac’s experienced and highly respected team to help grow our platform and broaden our relationships with institutional investors and allocators,” said ACRE Founding Partner Les Menkes. “This timely capital infusion serves as a testament to our proven investment, development and management strategies and the track record of success we’ve built over the last decade.”

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‘Almanac’s $320 million commitment comes in the midst of a volatile year in the commercial real estate industry, as investors wrestle with market disruption brought on by the COVID-19 pandemic, said Asia Capital Real Estate.

“The uncertainty of the current economic climate has had acute effects for commercial real estate, which is causing many investors to seek out funds with a more secure risk-return profile,” said ACRE Founding Partner Michael Van Der Poel.

Middle-market multifamily assets offer a more stable long-term outlook than many other areas of the market, and sponsors are growing increasingly aware of the asset class’s merits and differentiating factors. ACRE’s experience in this area and creative structuring approach offer a natural advantage in the sector, and we are grateful to have the backing of Neuberger Berman and Almanac as we successfully navigate a rapidly evolving market and accelerate our relationships with global institutional investors,” he added.

ACRE has a successful track record in the multifamily sector, spanning equity and credit investments and property management, which in combination with positive long-term fundamentals in the multifamily space should lend itself to both attractive real estate opportunities as well as the continued growth of a best-in-class, vertically-integrated multifamily platform,” said Justin Hakimian, Managing Director at Almanac.