Two Real Estate Investment Firms Raise Billions In Debt, Value-Add Funds
CBRE Global Investors and LaSalle Investment Management have closed two massive real estate funds.
CBRE's $1.34B value-add fund is geared primarily toward properties in the U.S. and has an anticipated annual return objective of 12% to 13%. LaSalle Investment Management's $1.07B debt fund is centered primarily on assets in the U.K., the Wall Street Journal reports. LaSalle plans to use the capital to provide senior and mezzanine loans to developers and investors.
CBRE Global Investors' fund already owns 17 properties worth an estimated $2B, including an office building in Chicago at 150 North Michigan Ave. for $120M; the building is 80% leased.
News of these fundraisers comes at a time when real estate investment fundraising is on the decline. According to Prequin, private equity real estate firms have raised $95.9B so far this year, down from last year's total $126B.