REAL ESTATE - General Investment & Development (GID) is getting prepared to close the money raising portion of its latest commingled fund, Windsor Realty Fund VII. The total amount of capital that would be raised is in the neighborhood of $170m.
One of the final investors in the fund could be the Oregon Public Employees Retirement Fund. It will be talking with GID sometime in the near future about placing some capital into the fund. These two bodies do have an existing relationship - Oregon has GID as its separate account manager to invest in apartments.
GID will be focusing on the purchase of existing industrial properties for Realty Fund VII. It will only be buying flex industrial product. This means properties that typically have from 40% to 60% office space and the rest of the building is made up of warehouse or showroom kind of real estate.
Elsewhere, JER Partners has participated in a retirement housing transaction with Formation Capital with a total value of $620m. The deal involved acquiring the assets of Tandem Health Care Inc.
The deal involved a mixture of debt and equity. There was around 65% to 75% financing on the purchase. The equity contribution was 90% supplied by JER Partners. The other 10% was invested by Formation Capital. The ownership of the assets will be split along the same lines as the equity contributions.
JER Partners made its investment for its commingled fund, JER Partners III. This is a commingled fund that the real estate manager raised $823 million of equity for a couple of years ago. One of its more significant investors was Teacher Retirement System for the State of Illinois.
Meanwhile, Clarion Partners has closed on office and retail acquisitions totaling $207m. These assets were acquired for different sources of capital. The office deal was acquired for the manager’s core commingled fund, The Lion Property Fund. The retail purchased was completed for a separate account pension fund client.
