Invesco Real Estate (IRE) has announced the first closing of its US IV fund, the fourth in a series of tactical funds investing European institutional capital into the US real estate markets.
Invesco Real Estate (IRE) has announced the first closing of its US IV fund, the fourth in a series of tactical funds investing European institutional capital into the US real estate markets.
The Luxembourg-domiciled fund closed on 18 February with a starting capital of $120 mln (EUR 89 mln) from four institutional investors, including two investors from MEAG Munich ERGO AssetManagement (MEAG) who are also the lead investors. With a maximum gearing of up to 60%, the initial investment provides Invesco Real Estate with approximately $275 mln of spending capacity. A second closing is planned in the second half of 2010 to achieve a target volume of $500 mln.
As with the three predecessor US tactical funds, the US IV fund will have a 100% allocation to the US and focus on core real estate investing across traditional sectors including office, retail and industrial. The fund will have a three-year investment phase with a planned lifespan of 10 years.
Steffen Pilopp, Invesco Real Estate's fund manager of the US funds commented: 'Now that the US investment markets are starting to stabilise, we believe it is the ideal moment for our institutional investors to continue to invest in this marketplace. We are delighted to have raised capital during what has been a difficult market environment and we hope to make the first acquisition announcements soon.'
Wolfgang Wente, head of Real Estate Funds and Cooperations at MEAG, added: 'For investors in Germany, the US IV fund provides an outstanding possibility, through its real estate portfolio, to diversify internationally due to the stabilisation of the US real estate markets.'
Invesco Real Estate's US portfolio of funds for institutional investors currently comprises 17 properties worth over $820 mln. The global real estate firm has been providing real estate investment and property asset management services since 1983, first in the US and then expanding into Europe and Asia. Globally, Invesco Real Estate has EUR 18.4 bn of assets under management, of which EUR 4.7 bn is managed across Europe.