Sterling raises $495m

The US-based real estate investment company has closed its third value-add fund above target.

The Palm Beach-headquartered real estate investment manager The Sterling Organization has held a final close on Sterling Value Add Partners III at $495 million, surpassing its initial fundraising target of $450 million.

Investors including US endowments, foundations, private and public pension plans, fund of funds and large family offices have committed to the fund.

The fund will primarily target grocery-anchored shopping centres, street retail, power centres and mixed-use properties in major US markets.

Its predecessor vehicle, Sterling Value Add Partners II had raised $311 million in the final closing held in 2014.