CBRE Global Investors has raised $1.34 billion for its latest U.S value-added fund. CBRE Strategic Partners U.S. Value 8 has attracted 25 institutional investors in the U.S., Europe, the Middle East and Africa. So far, the fund has invested in high-quality office, multifamily, mixed-use and logistics assets. Ropes & Gray advised CBRE Global Investors on the fund.
LOS ANGELES – November 28, 2017 – CBRE Global Investors today announced the final closing of CBRE Strategic Partners U.S. Value 8, L.P. with equity commitments of $1.34 billion from 25 institutional investors in the United States, Europe, the Middle East and Asia.
Strategic Partners U.S. Value 8, which is now closed to new investors, is expected to have total purchasing power of $3.3 billion, including leverage. The fund has invested or committed 59 percent of this amount, or $2.0 billion, in 17 high-quality office, multifamily, mixed-use and logistics assets. These initial acquisitions are targeting to deliver an 8.0 percent current return at asset stabilization. The Strategic Partners U.S. program has raised $9.1 billion in equity in 11 funds and three co-investment vehicles in the past 17 years.
This fund is a continuation and evolution of CBRE Global Investors’ enhanced-return program in the U.S. The investment team is seeking to execute a relatively low-risk value-added strategy focused on institutional-quality real estate acquired at a discount to reproduction cost. Target markets include major U.S. metropolitan regions with solid supply/demand characteristics that are expected to drive above-average rent growth and total returns.
“Our team is focused on executing a cycle-aware investment strategy with an emphasis on creating and maximizing the value of under-leased and under-managed assets through our operational expertise,” said Robert Perry, Portfolio Manager for the fund. “We have already made significant progress in this strategy.”
“A significant portion of the capital has been committed by existing investors on the CBRE Global Investors platform,” said Vance Maddocks, President of Strategic Partners U.S. “We thank all of our investors and their consultants for the continued confidence they have placed in us through these commitments to this latest fund.”
About CBRE Global Investors
CBRE Global Investors is a global real asset investment management firm with $98.3 billion in assets under management* as of September 30, 2017.
CBRE Global Investors is an independently operated affiliate of CBRE Group, Inc. (NYSE:CBG). It harnesses the research, investment sourcing and other resources of the world’s premier, full-service commercial real estate services and investment company for the benefit of its investors. CBRE Group, Inc. has more than 75,000 employees in approximately 450 offices (excluding affiliates) worldwide. For more information about CBRE Global Investors, please visit www.cbreglobalinvestors.com.