Citigroup's property arm has raised a total of $2.1 bn (EUR 1.58 bn) for its first high-return real estate funds that are designed to cash in on the investor demand for alternatives to stocks and bonds.
Citigroup's property arm has raised a total of $2.1 bn (EUR 1.58 bn) for its first high-return real estate funds that are designed to cash in on the investor demand for alternatives to stocks and bonds.
Citigroup and its partners committed EUR 200 mln of the total of EUR 1.16 bn is for the CPI Capital Partners Europe fund. Citigroup Property Investors' other fund, CPI Capital Partners Noth America has $603 mln in funds, $200 mln of which was committed by Citigroup and its partners. The US fund will mainly invest in the US and Mexico.
'Improving real estate fundamentals, shifting demographics and liquid capital markets are creating opportunities for our value-add approach to investing,' Joseph Azrack, ceo of CPI, said. 'Investors recognise this, and demand for this fund was strong across a broad range of domestic and international clients.'
The new European fund will mainly invest in Germany and other western European countries, as well as central and eastern Europe to a lesser extent. It will be managed by a London-based investment team headed by CPI Europe Roger Orf and chief investment officer Neil Hasson.
