New York
CBRE Global Investors Closes Largest Value-Added Fund and Exceeds Target With $2.3 Billion of Equity Commitments
10 Aug 2021
Senior Director, Corporate Communications
Pam Barnett
Senior Director, Corporate Communications
CBRE Global Investors today 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.
About CBRE Global Investors
CBRE Global Investors is a global real assets investment management firm with $129.1 billion in assets under management* as of June 30, 2021. The firm sponsors investment programs across the risk/return spectrum for investors worldwide.
CBRE Global Investors is an independently operated affiliate of CBRE Group, Inc. (NYSE:CBRE). It harnesses the research, investment sourcing and other resources of the world’s largest commercial real estate services and investment firm (based on 2020 revenue) for the benefit of its investors. CBRE Group, Inc. has more than 100,000 employees serving clients in more than 100 countries. For more information about CBRE Global Investors, please visit www.cbreglobalinvestors.com
*Assets under management (AUM) refers to the fair market value of real assets-related investments with respect to which CBRE Global Investors provides, on a global basis, oversight, investment management services and other advice and which generally consist of investments in real assets; equity in funds and joint ventures; securities portfolios; operating companies and real assets-related loans. This AUM is intended principally to reflect the extent of CBRE Global Investors’ presence in the global real assets market, and its calculation of AUM may differ from the calculations of other asset managers.
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.
About CBRE Global Investors
CBRE Global Investors is a global real assets investment management firm with $129.1 billion in assets under management* as of June 30, 2021. The firm sponsors investment programs across the risk/return spectrum for investors worldwide.
CBRE Global Investors is an independently operated affiliate of CBRE Group, Inc. (NYSE:CBRE). It harnesses the research, investment sourcing and other resources of the world’s largest commercial real estate services and investment firm (based on 2020 revenue) for the benefit of its investors. CBRE Group, Inc. has more than 100,000 employees serving clients in more than 100 countries. For more information about CBRE Global Investors, please visit www.cbreglobalinvestors.com
*Assets under management (AUM) refers to the fair market value of real assets-related investments with respect to which CBRE Global Investors provides, on a global basis, oversight, investment management services and other advice and which generally consist of investments in real assets; equity in funds and joint ventures; securities portfolios; operating companies and real assets-related loans. This AUM is intended principally to reflect the extent of CBRE Global Investors’ presence in the global real assets market, and its calculation of AUM may differ from the calculations of other asset managers.