CenterSquare Investment Management has created a commercial real estate debt co-investment vehicle alongside Temasek, a global investment company headquartered in Singapore, with which the firm has an existing relationship. Once fully funded, the vehicle will have US$200 million to deploy and will invest in high-quality subordinate real estate loans.

The portfolio is a continuation of the strategy employed across CenterSquare’s Debt Fund Series, which began in 1999 and seeks to generate risk-adjusted, equity-like returns through mezzanine loans and debt-like preferred equity investments, secured predominantly by highly viable, cashflowing rental assets.

“In the current higher-rate environment, we continue to see many borrowers in need of ‘gap capital’ as loans come due and they are no longer able to secure the same level of mortgage loan proceeds that were available previously in the lower-rate climate,” says Michael Boxer, managing director of CenterSquare�