Search
 

ABP Forges Into Below-Investment-Grade CMBS Market

NEW YORK CITY-In a vote of confidence for a near-future real estate recovery, ABP, the world's largest pension fund, hires Lend Lease Hyperion Capital Advisors to manage its new below-investment-grade CMBS account. ABP manages $165 billion in assets worldwide.

By Michael Gilliard | Updated on May 10, 2002

NEW YORK CITY-Netherlands-based ABP Investments US Inc., the world’s largest investment fund, has hired New York-based Lend Lease Hyperion Capital Advisors to manage its new below investment grade CMBS account. ABP manages $165 billion in assets worldwide. This move marks a vote of confidence in the U.S. real estate industry and the U.S. economy as a whole, a source close to the deal tells GlobeSt.com.

“In general, there are is a lot more investor interest now in below-grade CMBS accounts,” says the source. The recent trend toward hedging on high-risk properties indicates an optimistic nod for the economy from the investment market, as an exclusive GlobeSt.com story earlier this week indicates. In the article, Dallas brokers commented on the proliferation of attempts by big-name investors to acquire sub-grade properties in that market. For the full story, click on: GlobeSt.com EXCLUSIVE: Institutions Openly Chasing Class B, C Deals

Larry Hicks, principal of Lend Lease real estate investments and head of public debt for the company, commented on the attractiveness of the U.S. CMBS market to ABP. “We have a client who sees the advantage of CMBS: yield, providing higher returns, and subordination: mitigation against losses on the underlying collateral,” he says. The value of the Lend Lease-managed portfolio was not disclosed.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2024 ALM Global, LLC. All Rights Reserved.