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EXCLUSIVE: Thor seeking to raise $2.5bn globally

The New York-based developer is said to be targeting new capital raises for all four of its investment strategies.   

Thor Equities, the New York-based developer and fund manager, is said to be in the market to raise three new funds over the coming months, according to a person familiar with the matter. Through the vehicles, which will range from $400 million to $1 billion in size, the firm will pursue various value-added investment strategies in major urban markets in the US, Europe and Latin America.

Thor declined to comment, but PERE understands that the largest of the new offerings will be the fourth fund in its Thor Urban Property Fund series, Thor Urban Property Fund III, for which the firm is targeting nearly $1 billion. The firm is said to have already attracted seed capital for the latest fund in the series, which was launched 14 to 15 years ago and is the oldest of the firm’s investment strategies.

On behalf of the new vehicle, Thor will invest in the development and acquisition of retail and mixed-use properties in North America. The strategy will be similar to that of the fund’s predecessors, Thor Urban Property Fund I and Thor Urban Property Fund II, the first discretionary offerings in the series. The first fund in the series, Thor Urban Property Fund, was a non-discretionary vehicle. Limited partners in the funds have included pension plans, investment banks, college endowments, and foundations. 

Thor also is understood to be preparing to launch its next Mexican real estate fund through Thor Urbana Capital, its Mexico division. To date, Thor Urbana has raised more than $1 billion for its first two funds, Thor Urbana I and II, and is said to be seeking $400 million for its next vehicle, primarily from existing investors. Thor Urbana is focused on the acquisition, development and repositioning of multiple real estate properties in Mexico, including lifestyle centers, luxury hotels, and mixed-use projects located in the country’s main cities and top tourist destinations.  

Meanwhile, Thor is planning either its first discretionary fund or a programmatic vehicle with an investor in Europe, which will have a $500 million target and will focus on the development and acquisition of retail and mixed-use properties. Europe is a newer strategy for the firm, which entered the region about five years ago and previously made investments through non-discretionary joint ventures with investors.  

Additionally, the firm is said to be looking to attract an additional $500 million in capital for its New York City residential strategy through a non-discretionary co-investment vehicle, not a commingled fund. The developer also typically raises co-investment capital alongside its commingled funds that is at least equal to, if not double, the amount collected in the funds. 

To date, Thor Equities has amassed a portfolio consisting of shopping malls, hotels, retail, mixed-use properties valued at over $10 billion and totaling more than 20 million square feet. It has offices in New York, London, Paris, Mexico City, Chicago, San Francisco and Miami.