Partners Group, the Zug, Switzerland-based investment firm, has held a $1.1 billion final close for its latest global private real estate fund.
The Swiss group raised the capital for Partners Group Global Real Estate 2014 from a mix of new and re-upping institutional investors, including public and corporate pension plans, endowment funds and foundations, insurance companies and financial institutions.
Capital from the fund will be deployed on behalf of investors in direct, secondary and primary real estate transactions.
“In the past 18 months we have seen significant deal flow, in particular for direct and secondary investments,” commented Claude Angéloz, partner and co-head private real estate.
“We will continue to invest selectively on behalf of our clients across geographies and transaction types, with a particular focus on acquiring properties at attractive valuations, and on value creation opportunities in the retail, office, industrial, hotel, and residential property markets.”
At the time of closing, the program was already 49 percent committed. Direct investments include a portfolio of four indoor shopping centers in Norway, eight residential properties in Denmark, and a portfolio of warehouse and distribution facilities located in the US.
Secondary investments in the program include the purchase of a tail-end portfolio of US real estate assets including two hotels, as well as several cash flow-generating property portfolios in the Nordics and Switzerland.
“In addition to the fund, many of our large clients have chosen to pursue the same strategy through customized separate accounts,” added Angéloz.
Partners’ predecessor real estate fund – Partners Group Global Real Estate 2011 – corralled more $800 million back in 2012. The firm’s first global real estate fund closed on €275 million of capital commitments in 2008.