GLOBAL - Rothschild Realty Managers has invested $200m (€149.4m) into Welsh Property Trust, made through Rothschild's commingled fund, Five Arrows Realty Securities V.
Rothschild, which expects to achieve a current yield on its investment of 8-8.5%, cited Welsh Property Trust's stability as a deciding factor.
The Minnesota-based trust's strategy is to invest in industrial properties in the Midwest.
Rothschild Realty will be placing an initial investment of $150m into the company. Another $50m will be allocated at some point in the future.
Somewhere between $100m and $115m will come directly from the commingled fund.
The balance of the initial investment will come from a number of investors in Realty Securities V, including the Teacher Retirement System of Texas and the Ohio Public Employees Retirement System.
The co-investment option for the commingled fund kicks in when there is an investment made by the fund exceeding $100m.
With the investment in Welsh Property, Rothschild Realty has now invested 70% of the capital it raised for Fund V.
The company attracted $839m of equity for Fund V in July of 2008. It hopes to be 80-85% invested at some point in early 2011.
Rothschild Realty is on track to complete another deal for the commingled fund in January and is planning to start the marketing of its next commingled fund sometime in early next year.
The potential capital raise is within the range of $800m to $1.2bn for Five Arrows Realty Securities VI.