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NEWARK-Global Peace Financial Partners, based here, is raising a $250-million real estate private equity fund. Global Peace Real Estate Private Equity Fund 1 LLC will make direct investments in real estate projects in New Jersey, and in real estate securities such as revenue bonds and project bonds, according to managing director Jose Hernandez.
"The fund is unique because it provides investors with a principal protection guarantee," Hernandez says. "There are layers of protection built into the fund to protect our investors from the possibility of a loss."
About 30% of the money raised will be placed in a sinking fund that will be invested for the life of the fund in a high-yield annuity product or any other investment product that will provide a principal protection guarantee, according to Hernandez. "So far we have received commitments from a number of investors, and it looks like our offering will be oversubscribed," he says.
Global Peace Financial Partners, which will manage the fund, is already looking at several projects, according to Hernandez. They include a $50-million arena/hotel complex in Trenton, a $75-million residential condo project and a couple of existing hotels. The firm is also looking to add consultants to help identify potential investments on an ongoing basis as well as risk management specialists to analyze potential deals.
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