UNITED STATES - Rockpoint Group LLC has attracted $2.51bn (€1.58bn) of equity for its latest commingled fund, Rockpoint Real Estate fund III but says the sum could have been larger on the back of investor demand.
The real estate firm was contacted at the beginning of the year by many new investors showing an interest in the mainly US commingled fund, as they believe there are going to be some good investment opportunities this year in the US in the non-core sector, given where the state of the economy.
Rockpoint chose to cut off the money-raising now, as it was comfortable with the amount of capital it had attracted.
Moreover, the real estate manager received commitments from some of the largest public pension funds in the US, included $250m from CalPERS, $200m each from New York Common Retirement Fund, CalSTRS and Texas Teachers, $150m from Oregon Public Employees Retirement Fund, $110m from New York State Teachers Retirement System and $50m from Pennsylvania State Employees Retirement System.
Investors in the opportunistic commingled fund are projecting to achieve a net IRR of 155% over a 3-7-yr holding period.
At least 60% of the capital will be invested in the United States but up to 40% could be placed overseas, with the possibility of investments in Japan, the UK and Germany.
Rockpoint point has already invested $200m of it equity, a good portion of which has been invested in Japan.
The real estate manager figures suggests leverage on the fund will be in the range of 65% to 70% though it estimates this amount may be higher for transactions outside the US.
Investing will be made in a variety of complex transactions involving apartments, hotels and single-family residential.
And most of the transactions will be with direct property investments, although there is a possibility of some entity level deals could be considered.