CBRE Global Investment Partners (GIP) has announced the final closing of a value-add fund targeting European co-investment and joint venture strategies, having raised a total of $840 mln (€770 mln) of equity sourced from six investors.
CBRE Global Investment Partners (GIP) has announced the final closing of a value-add fund targeting European co-investment and joint venture strategies, having raised a total of $840 mln (€770 mln) of equity sourced from six investors.
The fund, which is closed to new investors, targets a 15% net internal rate of return (IRR). It invests in single-asset and portfolio deals sourced through GIP’s network of specialist operating partners in transactions not widely available on the open market.
This close marks GIP’s fourth value-add fund for the team and its first in Europe.
At final close the fund had committed $231 mln of equity to three transactions including a 440,000 m2 French logistics portfolio, two prime high street retail assets in central Madrid which require repositioning, and a two million square foot logistics development site inside the M25, London’s orbital motorway. Further investments totaling $123 mln are currently in exclusivity, the company added.
'We are very pleased to have completed a successful capital raising for our European value-add strategy,' said Jeremy Plummer, CEO of CBRE Global Investment Partners. 'The completed investments and those in due diligence follow our two main investment themes of prime logistics and dominant retail, with opportunities to enhance return through repositioning or de-risked development with experienced local operating partners.'
