CBRE Global Investors has raised $900m (€788m) for its fifth value-add Asia real estate investment fund.
Following an initial closing in July last year, the CBRE Asia Value Partners V (AVP V) fund – which reached its hard cap fundraising target – received commitments from investors including sovereign wealth funds, pension funds, and other top-tier institutional investors across North America, Europe and the Middle East.
With leverage, AVP V is expected to have total purchasing power of $2.3bn, excluding co-investment vehicles, the manager said.
The predecessor fund, which is part of the CBRE GI’s flagship pan Asia value-add investment program launched in 2009, raised $1bn in November 2017.
Like the predecessor fund, AVP V seeks to invest in “build- or reposition-to-core opportunities” focused primarily on the developed markets of Asia Pacific, with an overweight to the logistics sector, the manager said.
To date, the fund has acquired $190m of real estate through two investments in Japan, and based upon a deal pipeline, is expected to be over 40% committed by the second quarter of this year.
Bernie McNamara, CBER GI global head of investor services and solutions, said: “Interest in APAC real estate investments remains high, which is reflected in the strong demand from investors worldwide for this fifth iteration of our regional value-add real estate strategy.”
Adrian Baker, CEO and CIO – Asia Pacific, CBRE GI, said the logistics sector in Asia Pacific continues to be supported by consumption growth and technology adoption within the region, which in turn is generating an increased investment demand for the type of real estate AVP V is creating.
”With an expanded team of locally based acquisitions professionals and asset managers, we are well-placed to source, invest, develop and manage real estate investments on behalf of our investors.”
Shane Taylor, head of strategy and research - Asia Pacific, CBRE GI, said investing in quality, well-located logistics facilities in major metros is the main strategy that has guided the fund series, largely thanks to the structural rise of e-commerce in the APAC region.
“Even when faced with an exogenous shock - like the Coronavirus epidemic and the measures put in place to prevent its spread - this strategy gains added relevance.
”For households still need to consume goods and in avoiding conventional retail formats have embraced e-commerce even more enthusiastically. We have seen modern logistics facilities and their occupiers rise to the challenges presented by this crisis.”
