CBRE Global Investors today announced the final closing of CBRE Strategic Partners U.S. Value 7, L.P., with equity commitments of more than $1.3 billion from 26 institutional investors in the United States, Europe, the Middle East and Asia.
Strategic Partners U.S. Value 7, which is now closed to new investors, is expected to have total purchasing power of more than $3.3 billion, including leverage. The fund has invested 75 percent of this amount, or $2.5 billion, in high-quality office, multifamily and hotel assets. Its office properties have executed leases on 760,000 square feet of space. The Strategic Partners U.S. program has raised $7.2 billion in equity in 10 funds in the past 15 years.
This fund is a continuation and evolution of CBRE Global Investors’ enhanced-return strategy in the U.S. The investment team is targeting value-added-level returns through investment in institutional-quality real estate at a discount to reproduction cost in U.S. markets that are expected to outperform the overall real estate market. Additionally the team is working to execute a market-leading value enhancement strategy that includes repositioning underperforming assets and improving occupancy levels through implementation of Strategic Partners’ signature tenant amenity programs, including 5-Star Worldwide for office buildings and Inspired Lifestyle for multi-family assets.
“We have a cycle-tested investment team that has already made substantial progress toward executing a disciplined and selective investment plan where we expect to be able to enhance value through our strong operations,” said Vance Maddocks, President of Strategic Partners U.S. “We thank our investors and their consultants for the confidence they have placed in us through their commitments to this fund.”
About CBRE Global Investors
CBRE Global Investors is a global real estate investment management firm with $87.1 billion in assets under management* as of March 31, 2015. The firm sponsors investment programs across the risk/return spectrum for investors worldwide.
CBRE Global Investors is an independently operated affiliate of CBRE Group, Inc. (NYSE:CBG). It harnesses the research, investment sourcing and other resources of the world’s premier, full-service commercial real estate services and investment firm for the benefit of its investors. CBRE Group, Inc. has more than 52,000 employees in more than 370 offices (excluding affiliates) worldwide. For more information about CBRE Global Investors, please visit www.cbreglobalinvestors.com.
*Assets under management (AUM) refers to the fair market value of real estate-related assets with respect to which CBRE Global Investors provides, on a global basis, oversight, investment management services and other advice, and which generally consist of investments in real estate; equity in funds and joint ventures; securities portfolios; operating companies and real estate-related loans. This AUM is intended principally to reflect the extent of CBRE Global Investors' presence in the global real estate market, and its calculation of AUM may differ from the calculations of other asset managers.