JULY 13, 2016

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Cabot raises $467m for U.S. industrial fund

by Andrea Waitrovich

Cabot Properties has raised approximately $467.9 million for its Cabot Industrial Core Fund, according to a filing with the SEC.

The core fund will focus on the industrial sector, targeting a limited number of select markets in the United States with growing demand and asset scarcity.

Cabot anticipates raising $750 million in equity commitments, and will endeavor to create a portfolio of industrial properties with a fully capitalized value of $1.1 billion (assuming 40 percent leverage). The portfolio is generally expected to consist of 80 to 120 buildings totaling 17 million to 20 million square feet. There is a 10 percent non-industrial carve-out.

Cabot Core is targeting net returns of 8 percent to 10 percent, with anticipated initial current yields of 5 percent to 6 percent, which would grow over the duration of the fund. As a result, 70 perc

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