Cabot Properties has raised $1.57bn (€1.45bn) for Value Fund VII, a fund which with leverage will invest $3.5bn to develop and redevelop logistics assets in US, Europe and Asia Pacific.
Cabot said Value Fund VII’s equity commitments, which exceeded the fund’s initial target of $1.5bn, represent the manager’s largest fund to date.
Investors in the fund include a diverse mix of global institutions including endowments, foundations, public and corporate pensions, asset managers, and family offices, among others, Cabot said.
As reported by IPE Real Assets, the fund’s backers include Pennsylvania Public School Employees’ Retirement System, Teachers’ Retirement System of Louisiana and the New York State Teachers Retirement System.
Value Fund VII will target investments mainly in multi-tenant buildings between 50,000sqft and 250,000sqft, with the majority of capital being deployed in the US.
The fund has closed or committed approximately $1.2bn of capital to date across 30 investments in markets like Chicago, Atlanta, Seattle, Amsterdam and Sydney, the manager said.
Franz Colloredo-Mansfeld, chairman and CEO of Cabot Properties, said: “This past year has been a challenging time to raise capital. Generally, the point in the cycle when it is most difficult to raise capital can be the best time to invest capital.
”Almost 90% of the commitments came from our existing investors, and we are very grateful for the strong support we received from our longtime partners, many of whom have invested with us for more than 20 years, beginning with Value Fund I.”
Pat Ryan, president and CIO for the value fund programme at Cabot Properties, said: “We are excited to leverage our decades of experience, cycle-tested strategy, and global platform to prudently construct a diversified portfolio in a market that presents a unique set of opportunities and challenges.”
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