Transwestern Investment is planning to raise $450m (€370.7m) for its third value-add US real estate fund, according to people familiar with the matter.

The amount being sought for the Transwestern Strategic Partners Fund 3 fund is more than double the $200m raised in April 2019 for TSP Value and Income Fund 2, the previous fund.

Fund 3 will have a leverage component of approximately 65% and will invest in a mixture of industrial, multifamily and healthcare-related real estate as well as some retail and medical office transactions.

According to sources, the fund will target a return of at least 12%.

Transwestern declined a request for comment.

To read the digital edition of the latest IPE Real Assets magazine click here.