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Aiming to raise as much as $2B in capital for a new fund, Related Cos' recent move into debt financing has gotten even more aggressive.
The mega-developer, along with partner Highbridge Principal Strategies, will soon be acquiring funds for the new vehicle using debt as fuel instead of equity. The fund's emphasis will be on underperforming properties from REITs that have recently seen their stock prices take a beating, according to The Real Deal.
Buoyed by poorly performing returns among banks and insurance companies, Related's expansion into debt financing began two years ago and is part of a bigger trend to alternative real estate finance lending, even as more banks have been returning to the market.
Together with Highbridge, a division of JP Morgan Asset Management, the combined real estate fund manages a total of $3B in assets. [TRD]
