CBRE Global Investors had held a final closing for its sixth US value-added fund, significantly above its initial target. According to the Los Angeles-based global real estate firm, CBRE Strategic Partners US Value 6 has closed on nearly $1.1 billion in equity commitments from 22 institutional investors in the US and Europe, exceeding its original target of $750 million.
Through the fund, CBRE’s investment team will have total purchasing power of $2.7 billion to acquire, reposition and sell institutional-quality properties in major metropolitan areas across the US. Assets acquired on behalf of the fund so far include Tollway Plaza I & II, two adjacent Class A office buildings in Dallas; 400 South Hope Street, a trophy office tower in downtown Los Angeles; an office property in Atlanta; and two multifamily assets each in Denver and Baltimore. All told, these seven acquisitions represent a total value of approximately $601 million.
PERE reported over the summer that Fund VI had closed on $350 million of equity from six investors. According to documents from the San Diego City Employees' Retirement System, which contributed $20 million to the fund, the investments of Fund VI are expected to yield a 14 percent to 16 percent IRR.
Founded in 2000, the Strategic Partners US programme has closed eight funds and three co-investment partnerships totalling $5.6 billion in equity. The previous vehicle in the series, CBRE Strategic Partners US Value 5, closed on $1.3 billion in equity commitments in 2008. In August 2011, the firm made its final purchase on behalf of Fund V, acquiring a Class A office building in Houston for $24 million.