Transwestern Investment Group (TIG) has raised $325m (€334m) for its third US value-add real estate fund, the manager’s largest fundraise to date.
The real estate investment manager said the Transwestern Strategic Partners Fund III (TSP Fund III) fund has already committed close to 25% of its capital across investments in markets such as Austin, Phoenix and the Inland Empire.
TSP said the fund targets diversified value-add investment and development opportunities in markets and locations within the US that are “driven by strong job growth and global supply chains”.
TSP Fund III capitalises on opportunities offered in real estate sectors with secular tailwinds as well as those more dependent on cyclical economic trends. “These are primarily thematic opportunities in industrial, multifamily and healthcare, and secondarily in cyclical opportunities in markets with strong economic drivers, supply constraints and liquidity,” the manager said.
TIG said it expects that ”current market conditions will result in a repricing of assets and an opportunity for outsized returns”.
Charles Hazen, president of Transwestern Investment Group, said TSP Fund III’s fundraising was backed by both new and long-time investors.
TIG raised $200m in April 2019 for TSP Value and Income Fund II, the predecessor fund.
“We believe that the market reset we are experiencing, and our platform, will continue to provide attractive investment opportunities,” said Hazen.
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