US industrial real estate manager CapRock Partners has raised $700m (€605m) for its debut development fund.
CapRock Partners said the amount raised by the CapRock Logistics Venture exceeds the fund’s initial $450m target.
CapRock Logistics Venture is seeded with new large-scale industrial real estate projects and will fund nearly $2bn worth of projects in the Western US totalling 15m sqft. The seed portfolio includes CapRock’s Palomino Business Park, Saddle Ranch Business Park, Phase 2 and the I-15 Logistics asset, the manager said.
CapRock Logistics Venture marks an expansion of CapRock’s fund strategy, which previously focused on value-add investments. Back in January, CapRock raised $250m for CapRock Partners Industrial Value-Add Fund III, the manager’s third US industrial value-add fund.
Jon Pharris, co-founder and president of CapRock Partners, said the CapRock Logistics Venture received strong interest and participation from some of the world’s largest institutional investors and sovereign wealth funds.
“The successful closing of the vehicle validates our proven investment strategy, which focuses on developing large-scale Class-A logistics facilities and acquiring middle market value-add properties throughout the Western US and Texas.
“Through this venture, we have the opportunity to strategically expand our geographic presence and capitalise our robust development pipeline, which is especially important as significant development is needed to address supply chain issues that continue to plague our nation’s economy,” Pharris said.
Patrick Daniels, co-founder and CEO of CapRock Partners, said: “Our firm has experienced consistent growth from the beginning, and the strong participation in CapRock Logistics Venture combined with the ongoing diversification of our investor base solidifies CapRock as a premier investor in and developer of high-quality logistics assets in the US.”
Hodes Weill Securities acted as global placement agent and financial advisor to CapRock.
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