Related plans biggest-ever fund with $1.5bn capital-raising target

Related Fund Management is seeking to raise its largest-ever real estate fund, having set a capital-raising target of $1.5bn (€1.4bn) for Related Real Estate Fund III, according to one of its investors.

Teachers’ Retirement System of Louisiana has revealed it is one of the latest investors to join the opportunity fund, committing $50m.

The pension fund said Related is seeking to raise $1.5bn for the fund, which would make it 50% larger than its predecessor which raised $1bn in 2015.

According to Louisiana Teachers, Related expects to invest 40% of the fund in residential properties, 35% in office, 15% in hotels and the balance opportunistically.

Most, if not all, of the capital will be deployed in the US, with non-US exposure limited to 15%.

The fund will have a significant focus on the East Coast with a planned 40% weighting to the New York metropolitan area and Boston.

It will also allocate 20% to West Coast markets, 15% to the Midwest and invest the balance opportunistically.

The loan-to-value ratio at the porfolio level is projected to be 65%.

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  • QN-2570

    Asset class: Direct Real Estate.
    Asset region: Europe excluding Switzerland.
    Size: 150m.
    Closing date: 2019-10-30.

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