CBRE Global Investors raises US$900m for Asia Pacific value-add fund

CBRE Global Investors has raised US$900m in the final closing of its latest Asia Pacific-focused value-add property fund, CBRE Asia Value Partners V (AVP V).

The fund will have US$2.3bn, including leverage, in investment power after raising equity commitments from sovereign wealth funds, pension funds and other institutional investors across North America, Europe and the Middle East.

The closing follows substantial fundraising activities from Gaw Capital, CapitaLand, Angelo Gordon and other fund managers over the past 12 months, reflecting a continued appetite for real estate investments in Asia Pacific.

“Interest in APAC real estate investments remains high, which is reflected in the strong demand from investors worldwide for this fifth iteration of our regional value-add real estate strategy,” said Bernie McNamara, global head of investor services and solutions at CBRE GI.

The final closing of AVP V took place just seven months after its initial closing in July last year.

The fund has deployed $190m through two investments in Japan, and expects to commit more than 40% of capital by Q2 2020 due to its pipeline of deals under exclusivity.

The AVP fund series has delivered average net IRR of more than 17% after all fees and taxes since its inception in 2009.

The fund will invest in build- or reposition-to-core opportunities focused in developments markets, with an overweight to logistics.

“The logistics sector in Asia Pacific continues to be supported by solid consumption growth and technology adoption within the region, which in turn is generating an increased investment demand for the type of real estate AVP V is creating – high-quality logistics assets completed to high standards and modern specifications,” said Adrian Baker, CEO and CIO – Asia Pacific at CBRE GI.

“Investing in high quality, well-located logistics facilities in major metros is the main strategy that has guided this fund series, largely thanks to the structural rise of e-commerce in the APAC region,” noted Shane Taylor, head of strategy and research – Asia Pacific at CBRE GI.

“Even when faced with an exogenous shock – like the Coronavirus epidemic and the measures put in place to prevent its spread – this strategy gains added relevance. For households still need to consume goods and in avoiding conventional retail formats have embraced e-commerce even more enthusiastically. We have seen modern logistics facilities and their occupiers rise to the challenges presented by this crisis.”

CBRE GI holds US$11.9bn in assets under management in Asia Pacific, spanning core, value-add and opportunistic private real estate, listed real assets and infrastructure.

CBRE GI is a global real asset investment management firm with US$112.9bn in AUM.

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Benn is a freelance journalist and the publisher of APAC Real Estate. He has reported for the Herald Sun, REFI Europe, S&P Global Market Intelligence, Leader Newspapers, and more.