Return to search

EXCLUSIVE: CBRE GIP brings fund to $1.2bn

The real estate behemoth’s global open-end fund, Global Alpha, has collected more than $1.2 billion of equity commitments since its launch four years ago.

CBRE Global Investment Partners (GIP) has broken the $1 billion barrier for its flagship global open-end property fund, Global Alpha.

GIP, the indirect real estate arm of Los Angeles-based CBRE Global Investors, has exceeded $1.2 billion of total equity commitments for the fund since its launch adding $528 million over the last year.

Global Alpha, which launched in November 2011, seeks to provide a total return of 9 to 11 percent per annum for its investors.

Significant investments made by Global Alpha in 2014 included a secondary investment in a vehicle which owns Tour Adria in La Defense, a newly-formed joint venture focused on mezzanine loans in Germany and a joint venture which has acquired offices in Dublin.

“The fund has been steadily growing and the reason it continues to grow is that the track record is very good,” Jeremy Plummer, chief executive of GIP, told PERE. “We have been in the right markets at the right time and moved capital around the world catching markets in their upcycles while working with the best local players.”

Plummer added that another draw of the fund was the size and scale of its portfolio. “We are able to provide quite small pension funds access to a portfolio that would only be achievable for the largest pension funds or sovereign wealth funds.”

CBRE GIP is an independent division of CBRE Global Investors, the real estate investment business of real estate services giant CBRE. GIP invests in private funds, secondaries, co-investments and joint ventures, partnering with operators and fund managers for each strategy.

GIP has $13 billion in assets under management as of June 30, 2014.