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 â€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 CenterSquareâ€
