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NEW YORK CITY-Looking to acquire $2 billion in real estate assets, locally based Praedium Group LLC closed its $700-million real estate private equity fund, the Praedium Fund VI LP. Praedium executives say the fund will invest in mid-cap assets throughout the US and Canada in the $10-million to $70-million range. They intend to go after multifamily, office, retail and industrial property types.
Praedium president Russ Appel says the fund will target markets where Praedium has previously been successful. "We have a long historical and a strong expertise in value-added middle market properties across the US. We'd like to continue to capitalize on this strength."
Almost 90% of investors from its last fund returned to invest in Praedium VI. Praedium recently closed the $465-million Praedium Fund V, which is also investing in mid-cap properties similar to the ones that will be acquired in Fund VI. To date, Fund V has acquired assets totaling $1.7 billion in total capitalization.
The 36 institutional investors in this latest fund include public, corporate and foreign pension funds, foundations, endowments and other financial institutions. Praedium Group originally sought $500 million when it began marketing the fund. "The situations that we pursue are largely dependent on our team's ability to identify opportunistic transactions and successfully execute value-added business plans, rather than being solely dependent on increasing market conditions," adds Appel.
The Praedium Recovery Fund was formed in October 1994, and raised $175 million in equity. Praedium purchased $460 million in assets between late 1994 and 1996 and the fund is liquidated. The Praedium Opportunity Fund, which was formed in April 1997, raised $260 million in equity commitments, and invested in assets from mid-1997 through 1998. The Fund accumulated a portfolio of 117 assets with a total cost basis of approximately $860 million.
The Praedium Performance Fund was formed in December 1998, raised $350 million in equity commitments, and invested in assets from early 1999 through 2001. The fund accumulated a portfolio of 93 assets for approximately $750 million. Praedium has more than $4 billion in total investments to date in over 200 transactions comprised of 38 million sf of commercial space and 33,000 multifamily units.
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