Invesco Real Estate nears final close for $1bn value-add fund

Invesco Real Estate is expected to conclude fundraising for its latest US value-add real estate fund next month, according to a prospective investor.

North Dakota State Investment Board (SIB) said in a board meeting document that Invesco US Value-Add Fund V, which is seeking to raise $1bn (€885m), has so far secured $800m.

David Hunter, CIO of North Dakota SIB, told IPE Real Assets that the pension fund is planning to invest $70m in the fund.

As previously reported, Contra Costa County Employees’ Retirement Association and Teacher Retirement System of Texas have also committed capital

“We believe that now is a good time to put capital into value-add real estate given where we are in the late stage of a real estate cycle,” Hunter said.

“We feel comfortable investing with Invesco as we have a 20-year investment history with this manager.”

Hunter also said the pension fund intends to allocate a similar amount to value-add real estate next year.

“We are planning to make another $70m commitment sometime during the first six months of next year that will more than likely be made into a value-add fund.

“We are looking to fill out our value-add portfolio for real estate. Our overall investment plan calls for 65% core and 35% value-add.”

The Invesco fund is targeting returns of 11-14% by investing in US apartment, office, industrial and retail assets that need recapitalisation, renovation and re-tenanting, as well as developments.

Around 40% of the capital raised for the fund has already been used to acquire assets or commit to acquisitions.

Related images

  • US Real Estate

Have your say

You must sign in to make a comment


Your first step in manager selection...

IPE Quest is a manager search facility that connects institutional investors and asset managers.

  • QN-2571

    Asset class: Equities.
    Asset region: US.
    Size: $400m.
    Closing date: 2019-11-14.

  • QN-2572

    Asset class: High Yield Bonds.
    Asset region: Global Developed Markets.
    Size: $200m.
    Closing date: 2019-11-27.

Begin Your Search Now