MassMutual insurance company and investors advised by Strategic Investment Group have committed $116m (€107m) to Cornerstone Real Estate Advisers’ new value-add real estate fund.
Cornerstone, which is owned by MassMutual, is looking to raise up to $750m for the Cornerstone Fund X, according to sources familiar with the matter.
Cornerstone will also be making a $1m co-investment and the fundraising programme could extend into 2016. Leverage will be capped at 65%.
Strategic Investment manages indirect real estate investments on behalf of institutional investors.
The fund will invest in existing assets in the US that can be improved through renovation, re-leasing or repositioning.
It will target office, industrial, retail and apartment assets and is hoping to close on its first transaction this month.
Cornerstone is likely to target technology centres in markets in Boston, North Carolina and Austin.