Cabot Properties has held a final close on its oversubscribed logistics fund collecting $1.57 bn (€1.45 bn) of commitments as its chairman declares: 'The point in the cycle when it is most difficult to raise capital can be the best time to invest capital.'
The US company is using the capital to fund to acquire, develop and redevelop up to $3.5 bn of logistics assets in the US, Europe and Asia Pacific.
Fund VII represents Cabot’s largest fund to date with commitments coming from global institutions including endowments, foundations, public and corporate pensions, asset managers, and family offices, among others.
Fund VII is part of the firm’s flagship fund series, which has raised more than $5.75 bn of equity. It has so far closed or committed approximately $1.2 bn of capital to date across 30 investments in markets like Chicago, Atlanta, Seattle, Amsterdam and Sydney. The latest fund will target investments mainly in multi-tenant buildings between 50,000 and 250,000 ft2, with the majority of capital being deployed in the US.
Franz Colloredo-Mansfeld, chairman and CEO of Cabot Properties, said: 'This past year has been a challenging time to raise capital. Generally, the point in the cycle when it is most difficult to raise capital can be the best time to invest capital.'
'Almost 90% of the commitments came from our existing investors, and we are very grateful for the strong support we received from our longtime partners, many of whom have invested with us for more than 20 years beginning with Value Fund I. We are also pleased to welcome a number of new investors.'
Pat Ryan, president and CIO for the Value Fund Program added the market presented a 'unique set of opportunities and challenges'.
