GLOBAL - Partners Group has raised €750m for its first fund dedicated to acquiring stakes in existing real estate investments through the secondary market.
The Partners Group Real Estate Secondary 2009 will target real estate 'secondaries' on a global basis on behalf of a number of sovereign wealth funds, endowments, corporate and public pension funds, insurance companies, financial institutions and high net worth individuals from around the world.
The global private markets specialist has already deployed approximately 30% of the capital in opportunities it has identified across the four main regions of North America, Latin America, Europe and Asia-Pacific.
Marc Weiss, partner and global head of private real estate secondaries at Partners Group, said: "We are very satisfied with the positive performance of the portfolio to date.
"With an abundance of deal flow and few market players having capital available to transact on offerings, we are well positioned to secure attractive opportunities for our clients.
"We are in advanced negotiations to acquire further attractive positions in early 2011."
Partners Group, which has a history of investing in private equity secondaries, is seeking real estate investment opportunities characterised by conservative debt financing, high-quality assets with minimal near-term refinancing risk and long-term leases to reliable tenants.
The company recently identified the secondary market in real estate funds as being one of three best global real estate investment opportunities in the current environment, alongside recapitalisations in mature western markets and investing in emerging growth markets.
Partners Group has already announced it is pursuing secondary market opportunities as part of its real estate investment mandates with the Avon Pension Fund.
The first close of its new secondaries fund comes several months after Morgan Stanley Alternative Investment Partners launched its first real estate fund of funds vehicle dedicated to the secondary market, Phoenix Global Real Estate Secondaries.