Rockpoint Group is set to launch its fourth opportunity fund targeting roughly $2.5 billion of equity commitments, PERE has learned.
The Boston-based firm was expected to launch Rockpoint Real Estate Fund IV in the first quarter, according to people familiar with the matter, targeting a similar amount to its predecessor, Fund III, which closed on $2.5 billion in July 2007.
Rockpoint declined to comment, however, sources said the firm would look to raise equity from international institutional investors for the first time, as well as marketing to US investors. Among the firm’s existing LPs are California State Teachers Retirement System, Nebraska Investment Council, New York State Common Retirement Fund, New York State Teachers Retirement System, North Carolina Retirement Systems, Oregon Public Employees Retirement Fund, Pennsylvania State Employees Retirement System and the UCLA Foundation, according to public pension documents.
The move follows an active 18 months for Rockpoint as the firm predominantly focused on distressed US real estate deals. In November, the firm acquired the Milford Plaza Hotel in New York’s theatre district in a joint venture with hospitality investment company Highgate Holdings. The deal, valued at between $230 million and $240 million, would see the duo invest more than $75 million of additional equity for a complete renovation of the 1,300-room hotel – nicknamed the “Lullabuy of Broadway” – after it was sold by the Milstein family after their planned facelift of the property was put on hold.
Fund IV is expected to follow a similar strategy as Fund III, with the focus largely on US distress but with an ability to invest in Europe and Asia.