AEW Closes Fund at Nearly $343M

BOSTON-AEW Capital Management LP closed AEW Value Investors LP, a value-added real estate fund. The fund, which is expected to be the first in a series, exceeded its target capitalization with a total of $342.5 million in equity commitments.

AEW says that the fund’s strategy is to add value through redevelopment, repositioning, re-leasing, recapitalization and completion of single-phase development in order to generate attractive risk-adjusted returns. “We see value-added strategies as a way to unlock intrinsic value in real estate investing,” points out Pamela J. Herbst, head of AEW’s Direct Investments Group. Herbst adds that AEW Value Investors fund offers institutional investors both current income, as well as appreciation potential through improving the operating fundamentals of the fund’s properties.

Plans are for the fund to invest in the four property sectors: industrial, retail, apartment and office, focusing on opportunities in urban multifamily, high-density neighborhood retail, industrial properties in top distribution markets and high-density MSA office. AEW notes that the fund most likely will be underweighted in the office sector in the near term.