Invesco Real Estate has raised an initial $700m (€594m) for its latest US value-add fund.
Max Swango, managing director and global head of client portfolio management for Invesco Real Estate told IPE Real Assets the Invesco Real Estate US Fund VI fund is expected to have a final close this year, “but we have until 30 June of next year to reach either the $1.25bn target or $1.5bn hard cap”.
Once the hard cap is reached, the fund is expected to have investment firepower of around $4.5bn.
According to the manager, the fund’s first close was backed by US-based investors. Invesco now expects to receive capital commitments from institutional investors in the Middle East and Korea.
As previously reported, North Dakota State Investment Board was planning to issue a $200m commitment to Fund VI.
“Invesco has created a seed portfolio with a $75m equity investment and another $75m in bridge financing provided by Invesco. All of this capital has been committed to transactions for the fund,” said Swango.
Fund VI’s current deals include build-to core logistics assets in the Northeast, single-family rental assets in the South and some deals in Southern California.
Invesco’s plan is to invest two-thirds of the fund in a mixture of logistics and residential assets.
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