CBREIM closes global special situations fund on $599m, targeting distressed RE assets

Jun 6, 2022 | News | 0 comments

CBRE Global Investment Management has collected $599m for its Global Special Situations Fund together with its co-investment vehicles.

The fund has beat its initial $500m target and 70% of the capital has been deployed for five investments including a last-mile logistics company in Europe, as well as a light industrial, a single-family rental and a self-storage business in the US.

The firm said the vehicle seeks to invest in real estate at an attractive basis due to liquidity or capital constraints. This will mainly be done through participations in recapitalizations and partial interests in assets.

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Matt Tepper, fund manager for CBRE Investment Management, said, “The Fund’s strategy is designed to take advantage of inefficiencies in capital markets and create unique opportunities for our investors through recapitalizations and GP-led secondaries. We are seeing a significant and growing opportunity within these execution structures that can enhance the opportunity set for investors while providing access to high-quality real estate and attractive risk-adjusted returns.”

Achal Gandhi, CIO of indirect real estate strategies at CBRE, added, “The Fund allows us to expand our execution into the opportunistic return spectrum and take full advantage of our deep operating partner network. GP-led secondaries are becoming a more prominent execution path in private real estate markets globally, and we expect this theme to continue going forward. The Fund’s existing portfolio demonstrates the team’s ability to generate opportunistic returns whilst remaining within our preferred themes.”

CBRE partnered with Palmer Capital Partners in 2019 to launch the £250m Fiera Real Estate Opportunity Fund V targeting value-add and opportunistic real estate deals in the UK.

Private capital has flocked into special situation funds to fill up public and private market liquidity needs.

Bain Capital has reportedly raised more than $2bn for its distressed investment and special situations fund in 2020.

Monroe Capital launched a $500m opportunistic private credit fund with a focus on asset rich directly originated and secondary credit opportunities.

Non-distress special situation investor closed its fifth fund on its JPY 75bn ($574m) hard cap in April after six months in the market, representing the firm’s fastest fundraise.

Source: Alt Assets

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