CBRE Investment Management has raised $1.74bn (€1.5bn) from 13 institutional investors from EMEA, the Americas and Asia Pacific for its sixth value-add Asia real estate investment fund.
With leverage, the CBRE Asia Value Partners VI (AVP VI) fund will have purchasing power in excess of $4bn, to be deployed over a 36-month investment period.
The commitment, including co-investments from CBRE Investment Management, exceeded the initial target of $1.2bn.
Bernie McNamara, CBRE Investment Management, global head of investor solutions, said: “The strong fundraising momentum of AVP VI underscores the continued need for high-quality logistics in clients’ global portfolios, the attractiveness of our Asia-Pacific investor-operator model, and our proven track record, particularly in the logistics sector.”
Similar to its predecessor funds, AVP VI will pursue build- and reposition-to-core opportunities within the most developed and liquid markets of Asia-Pacific.
Logistics investments will continue to be the central focus of the fund’s strategy, with at least 80% of equity commitments to be deployed towards the sector, McNamara said.
Adrian Baker, CBRE Investment Management portfolio manager for the fund, said the firm’s team had identified a strong deal pipeline, and expected to complete its first investments before the end of the year.
Shane Taylor, CBRE Investment Management and head of real assets research – Asia-Pacific, noted: “Even as the world progresses towards a post-pandemic recovery, structural themes favouring modern logistics will continue to advance.
“Digital transformation and e-commerce adoption are expected to outlast the pandemic. Logistics occupiers are demonstrating their commitment to longer-term expansion plans, with leasing inquiries and pre-commitments to facilities yet to be completed.”
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