CBRE Global Investors Closes Pan Asia Value-Add Fund with US$900 Million of Equity Commitments
09 Mar 2020
CBRE Global Investors today announced the final closing of CBRE Asia Value Partners V (“AVP V” or the “Fund”) at its hard cap size of US$900 million in equity commitments. Investors in AVP V include sovereign wealth funds, pension funds and other top-tier institutional investors across North America, Europe and the Middle East.
The final closing took place seven months after the Fund’s initial closing in July. “Interest in APAC real estate investments remains high, which is reflected in the strong demand from investors worldwide for this fifth iteration of our regional value-add real estate strategy,” said Bernie McNamara, Global Head of Investor Services and Solutions.
AVP V, which is now closed to new investors1, is a continuation and evolution of the firm’s flagship Pan Asia value-add investment program that was launched in 2009. The average net IRR since inception across the fund series is over 17% after all fees and taxes2. Similar to the predecessor fund, AVP V seeks to invest in build- or reposition-to-core opportunities focused primarily on the developed markets of Asia Pacific, with an overweight to the logistics sector. The Fund also selectively pursues investments in sectors supported by positive structural trends and opportunities offering compelling returns.
Adrian Baker, Chief Executive Officer and Chief Investment Officer – Asia Pacific, CBRE Global Investors, notes, “The logistics sector in Asia Pacific continues to be supported by solid consumption growth and technology adoption within the region, which in turn is generating an increased investment demand for the type of real estate AVP V is creating – high-quality logistics assets completed to high standards and modern specifications. With an expanded team of locally based acquisitions professionals and asset managers, we are well-placed to source, invest, develop and manage real estate investments on behalf of our investors.”
“Investing in high quality, well-located logistics facilities in major metros is the main strategy that has guided this fund series, largely thanks to the structural rise of e-commerce in the APAC region. Even when faced with an exogenous shock – like the Coronavirus epidemic and the measures put in place to prevent its spread – this strategy gains added relevance. For households still need to consume goods and in avoiding conventional retail formats have embraced e-commerce even more enthusiastically. We have seen modern logistics facilities and their occupiers rise to the challenges presented by this crisis.”, added Shane Taylor, Head of Strategy & Research – Asia Pacific, CBRE Global Investors.
With leverage, AVP V is expected to have total purchasing power of US$2.3 billion, excluding co-investment vehicles. To date, the Fund has acquired $190 million of real estate through two investments in Japan, and based upon a deal pipeline ‘under exclusivity,’ is expected to be over 40% committed by Q2 2020.
Currently, CBRE Global Investors has US$11.9 billion in assets under management3 in Asia Pacific across core, value-add and opportunistic private real estate, listed real assets and infrastructure, through funds and separate accounts.
About CBRE Global Investors
CBRE Global Investors is a global real asset investment management firm with $112.9 billion in assets under management3 as of December 31, 2019. 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 2018 revenue) for the benefit of its investors. CBRE Group, Inc. has more than 90,000 employees (excluding affiliates) and serves real estate investors and occupiers through more than 480 offices (excluding affiliates) worldwide. For more information about CBRE Global Investors, please visit www.cbreglobalinvestors.com
- Nothing in this press release constitutes an offer to sell or a solicitation of an offer to purchase any security.
- Past performance is not indicative of future returns. There can be no assurance that AVP V will be able to make investments or achieve returns like those of its predecessor funds. Calculation of net IRR since the inception of the fund series is a simple average of the since inception net IRRs of Asia Alpha Plus, Asia Alpha Plus II, Asia Alpha Plus III and Asia Value Partners IV up to September 30, 2019, net of all management fees, carried interest, fund-level expenses, and taxes.
- Assets under management (AUM) refers to the fair market value of real asset-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 asset-related loans. This AUM is intended principally to reflect the extent of CBRE Global Investors’ presence in the global real asset market, and its calculation of AUM may differ from the calculations of other asset managers.