LONDON (Reuters) – U.S.-based private equity fund Valeo Fund said on Tuesday plans to raise $150 million from UK and European investors, targeting discounted deals in U.S. commercial real estate as a wave of debts mature before 2014.
The fund — seeking investments from high net-worth people, private wealth managers and institutions — is eyeing direct commercial properties and real estate-secured debt instruments in the $15 million to $55 million range, it said.
“Nearly $1.5 trillion in sector loans are set to mature through to the end of 2013 … these debt maturities, along with additional necessary capital requirements, are a catalyst to deal-flow,” Dallas-based Valeo said in a statement.
“Without the funding to sustain these deals, a fundamental repricing of the market is taking place, creating attractive opportunities for savvy investors,” it said.
Surveyors are seeing rising interest from specialist funds for investments in distressed U.S. real estate, as the funds eye a long-awaited rebound in the hard-hit market.
Hong Kong-based Primus Financial Holdings told the Reuters Private Equity and Hedge Funds Summit earlier on Tuesday it sees extraordinary opportunities in distressed U.S. real estate, and is planning investment vehicle to target that.
(Reporting by Daryl Loo; Editing by Andrew Macdonald) (See www.reutersrealestate.com for the global service for real estate professionals from Reuters)