Managers

CBRE GIP collects $840m for Euro fund – Exclusive

In a further demonstration of its growing importance both in the market and within CBRE Global Investors, the former fund of funds manager has completed its biggest closed-ended fundraising to date.

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CBRE Global Investment Partners (GIP), the indirect and partnerships investment division of real estate investment management firm, CBRE Global Investors (GI), has raised its biggest closed-ended fund to date, PERE can reveal.

In another indicator of the growing stature of CBRE GIP, both within the private real estate market, but also within CBRE GI itself, the firm has held a final closing on its European Value-Add Fund at $840 million.

The vehicle attracted equity commitments from just six investors, indicative also of how popular the platform has become among the largest institutional investors and how accepted its shift from making purely indirect investments to including various direct transactions has been.

The division, led in the UK by global head Jeremy Plummer, already has committed $231 million of the equity raised across three transactions: a 4.5 million square foot logistics portfolio in France, two high street retail assets in Madrid and two logistics development sites near London. Another $123 million of deals are currently in exclusivity.

From these and the fund’s future investments, GIP is aiming to generate net IRRs of 15 percent, typical of a value-add fund strategy.

According to a prior announcement, last year GIP’s European business transacted $4.18 billion of the $11.46 billion transacted overall in the region by parent GI.

In another sign of its growing relevance, the GIP’s Asia business, headed by Singapore-based Adrian Baker, has assumed responsibility for GI’s future value-add fund activities. It was revealed last week that a first vehicle targeting as much as $750 million of equity was set to hit the fundraising trail imminently, although that remains unconfirmed by both GI and GIP.

In Europe, GI has not raised a value-add fund since before the global financial crisis and so the introduction of the European Value-Add Fund by GIP effectively fills a gap in GI’s fund offering. As in Asia, GIP is able to leverage the direct real estate investment management team of GI on its direct deals.

GIP managed $13.6 billion as of December, 31 2015. The wider GI business managed $89 billion.