Tishman Speyer has concluded fundraising on its latest US real estate vehicle, Tishman Speyer Real Estate Venture VIII, raising a total of approximately $700 million in commitments. The firm declined to comment, but PERE understands that the New York-based developer and fund manager was targeting at least $750 million for the fund.
Last June, Tishman was said to have hired the fund placement division of Greenhill & Company to help bring additional US investors into the fund, while the firm independently would focus on marketing to foreign investors. The hire marked the first time that Tishman was using a placement agent for a US fundraising. At the time, the firm had raised $500 million in equity without a placement agent for Venture VIII, which held a first close in March 2012, and had aimed to complete the capital raise by the end of 2012.
However, sources familiar with the matter said Tishman extended the fundraising period for Venture VIII through the end of March, although it ultimately did not raise any additional capital in 2013. While the firm did attract some US capital after hiring Greenhill to assist with marketing, the vast majority of the equity raised for the fund came from foreign investors, sources noted.
Dutch pension administrator Algemene Pensioen Groep, which is said to have committed $200 million, is the lead investor in the fund, and other limited partners include US insurer The Travelers Companies. Additionally, Tishman made a co-investment of $50 million towards the fund’s first close, according to a filing with the US Securities and Exchange Commission.
Venture VIII will be focused on value-added investments in North America, following a similar strategy to that of its predecessor, Tishman Speyer Real Estate Venture VII, which closed on a total of $1.5 billion in 2008.