UNITED STATES - Shorenstein Properties LLC has decided to reopen its last closed-end mezzanine commingled fund Shorenstein Realty Investors Nine to existing investors, in a bid to make gains before financing capital hits the market.

The commingled fund managed had raised $1.3bn (€878m) for the fund when it was closed in early summer of 2007 but is now being reopened to its investors - a combination of foundations, college endowments, pension funds and high net-worth individuals - as the company believes capital could be raised quickly without any additional marketing costs involved.

Time and money is a key factor in the decision by Shorenstein to re-open the fund but the firm has been completing several mezzanine deals for Realty Investors Nine so this new capital would allow the manager to put together more mezzanine deals in a short time frame.

Timing is especially critical, say officials, as many investors believe a lot more capital will be coming into the mezzanine debt market shortly - making pricing on these deals less attractive.

It is very rare for a commingled fund manager in the United States to reopen a closed-end fund to the same investors as most managers, when they conduct the initial capital raise, will have either a side car fund or co-investment capability to attract more capital to the commingled fund.

Shorenstein is expecting to attract an additional $650m of equity to Realty Investors Nine as well as making an additional $50m co-investment itself to the fund. During the initial capital raise, it had contributed $100m of its own capital to the fund.

Realty Investors Nine only invests in office buildings but is looking at properties in major New York, Washington DC, San Francisco, Los Angeles, Boston, Chicago, Seattle and Portland.

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