REAL ESTATE- AEW Capital Management has closed its money raising for its latest commingled fund, AEW Partners V.
It attracted equity capital from both pension funds and endowments totaling $686m (€532m).
AEW portfolio manager Mark Davidson said: “Our original intent was to have a total equity raise in the neighborhood of $500m-$600m.
“Our fund is an example that there is still a lot of institutional capital looking to find a home in real estate.”
Many of the top commingled fund managers are raising more capital than they intended for their recent investment funds.
Many of the investors looked at Partners V as a value-added or opportunistic fund. Projected returns for investors are a 18% net IRR. This yield assumes a three- to five-year holding period. There is a four-year investment period to find all of the transactions for the fund.
The initial focus on the fund will be on investing in office buildings and hotels. Davidson said, “We believe that these two property types will be affected positively by businesses started to spend more money.” This means more employees going on business trips and companies looking for new office space.
AEW has also acquired several hotels for Fund V. These have been in markets like Boston, Seattle, Atlanta and Chicago.