CBRE Global Investors has held a $1 billion final closing for CBRE Asia Value Partners IV. The commitments came from 21 institutional investors in the United States, Asia Pacific and EMEA, which include equity commitments to the fund and to its co-investment vehicles.
Asia Value Partners IV’s investment strategy is to create core logistics assets through value-added investment initiatives or de-risked development in the most liquid markets in Asia Pacific as well as selective investments in other sectors and opportunities that offer compelling income returns or mispricing.
“We expect to enhance value through a disciplined, cycle-aware investment and operations strategy,” said Richard Price, CEO-Asia Pacific for CBRE Global Investors. “We have already made substantial progress in the execution of our strategy and thank our investor partners and their consultants for the confidence they have placed in us through their commitments to this fund.”
Asia Value Partners IV and its co-investment vehicles are expected to have total purchasing power of more than $2.5 billion, including leverage. To date, the investment team has acquired or committed to $1.1 billion of real estate through five investments, primarily in logistics assets in Japan, China and South Korea.
“Forecasts of private consumption growth in Asia Pacific are notably higher than in other major regions,” said Adrian Baker, CIO-Asia Pacific for CBRE Global Investors. “Additionally Asia Pacific e-commerce sales as a percentage of total retail sales are the highest of all major regions and are expected to continue to grow at a faster pace. These factors support the case for investment in modern logistics facilities across the region.”
CBRE Global Investors currently has $10 billion in assets under management invested in the Asia Pacific markets in both public market real estate equity and core and value-added private equity real estate funds and separate accounts.
In additional fundraising, CBRE’s U.S.-focused value-added fund, CBRE Strategic Partners U.S. Value 8, recently raised $1.06 billion. The fund series targets value-add investments in major and secondary U.S. markets, focusing on class A office, industrial, retail and multifamily properties.
