CBRE Investment Management Raises US $1.74 Billion for its Sixth Pan-Asia Value-Add Fund
05 Oct 2021
CBRE Investment Management (the “Firm”) today announced it has received total capital commitments of US $1.74 billion (including Firm co-investment) from 13 institutional investors from EMEA, the Americas and Asia Pacificfor CBRE Asia Value Partners VI (“AVP VI” or the “Fund”). 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. The Fund, which has received strong interest from a diverse group of institutional investors globally, held its first closing in June 2021and is now closed to external investors.
“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.”
Similar to its predecessor funds, AVP VI will pursue build-and reposition-to-core opportunities within the most developed and liquid markets of Asia Pacific. 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.
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.”
An approximately 100-person-strong Asia Pacific team covering the Fund’s target markets will execute AVP VI. Since 2016, the team has invested in 57 logistics assets across the region with cumulative logistics asset value and area, on a completed basis, of US $6.7billion and 4.1 million square meters respectively.
“Over the last five years, we have strategically expanded our Asia Pacific capabilities to develop, invest in and operate some of the highest quality logistics investments in the region,” said Adrian Baker, CBRE Investment Management Portfolio Manager for the Fund. “Our team’s expertise and skill sets equipus 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.”
As of June 30, 2021, CBRE Investment Management has US $15.1 billion in assets under management in Asia Pacific across core, value-add and opportunistic private real estate, listed real assets and infrastructure, through funds and separate accounts.
About CBRE Investment
Investment Management is a leading global real assets investment management firm with $129.1 billion in assets under management* as of June 30, 2021, operating in more than 30 offices and 20 countries around the world. Through its investor-operator culture, the firm seeks to deliver sustainable investment solutions across real assets categories, geographies, risk profiles and execution formats so that its clients, people and communities thrive.
CBRE Investment Management is an independently operated affiliate of CBRE Group, Inc. (NYSE:CBRE), the world’s largest commercial real estate services and investment firm (based on 2020 revenue). CBRE has more than 100,000 employees serving clients in more than 100 countries. CBRE Investment Management harnesses CBRE’s data and market insights, investment sourcing and other resources for the benefit of its clients. For more information about CBRE Investment Management, please visit www.cbreim.com
*Assets under management (AUM) refers to the fair market value of real assets-related investments with respect to which CBRE Investment Management 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 Investment Management’s presence in the global real assets market, and its calculation of AUM may differ from the calculations of other asset managers and from its calculation of regulatory assets under management for purposes of certain regulatory filings.