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AEW closes senior housing fund above target

The Boston-based real estate investment manager has collected $371 million in commitments for its second fund focusing on the niche sector. 

AEW Capital Management has closed AEW Senior Housing Investors II with a total of $371 million in equity commitments, far surpassing its original target of $250 million for the value-added vehicle. 

Through the fund, AEW is investing in primarily age-restricted, independent living, assisted living and memory care communities. The Boston-based real estate investment manager already has committed more than 40 percent of the fund’s capital, focusing on stabilized, cash-flowing properties, as well as select repositioning, renovation, recapitalization and development opportunities.

AEW purchased the Balfour Senior Housing Portfolio on behalf of the fund in March. The $104 million transaction added three Class A properties totaling 296 units to the fund’s portfolio.

“We are excited about the investments we have closed to date and will continue to focus on assets that offer strong income returns and value appreciation potential,” said Chris Kazantis, portfolio manager for AEW Senior Housing Investors funds, in a statement.  “With more than 15 years of underwriting experience in the seniors housing space and our vast sourcing network, we have a robust pipeline of investment opportunities.”

Investors in the fund include the Teacher Retirement System of Texas, which committed $100 million to the offering in February 2013. The vehicle held a first close in November 2012 on approximately $113 million and a second close in November 2013 on approximately $164 million, according to filings with the US Securities and Exchange Commission (SEC).

AEW’s prior fund in the series, AEW Senior Housing Investors, closed on $178 million in 2010, according to SEC filings. AEW has been investing in the sector since 1997 and has acquired, repositioned or developed more than 14,000 senior housing units.