NORTH AMERICA – The Rockpoint Group has raised $1.95bn (€1.5bn) for its latest commingled fund, Rockpoint Real Estate Fund IV.
According to industry sources, as much as 20% of the fund can be invested outside the US.
Rockpoint would be focusing this part of the fund on Europe, particularly France and the UK. Asia is not considered a potential market.
Rockpoint attracted capital from a number of US pension funds, including the Employees Retirement System of Texas ($110m), the Oregon Public Employees Retirement Fund ($100m), the Florida State Board of Administration ($100m) and the New Mexico State Investment Council ($50m).
For the first time, the company also won investment from outside the US, attracting capital from Canada, Asia and the Middle East.
The estimated annualised returns for investors in the fund are 20% gross and 15% net IRR.
Rockpoint, which made a $29m co-investment, is planning 50-60% leverage for the fund.
The US strategy will be to focus on offices, hotels and apartments on the East or West Coast, particularly Boston, New York, Washington, DC, Silicon Valley/San Francisco, Los Angeles and Seattle.
It will also be looking to take advantage of distress in the market, including buying properties, purchasing debt and converting this to ownership in the future, and re-capitalising existing properties.
Rockpoint has a four-year investment period for the fund.
The real estate manager has already invested $470m of equity for the fund in 12 different transactions.