DALLAS–The locally-based private equity real estate fund company, Velocis Fund LP has launched its second fund. Velocis Fund II has a targeted equity capital raise of $300 million and will pursue office, medical office and retail properties in growth markets throughout the US.
“The Velocis team's industry experience, relationships and our proven ability to unlock value in assets will provide our investors with unique opportunities in the U.S. commercial real estate market,” says Fred Hamm, Velocis managing principal, in a statement. “We took a similar approach with Fund I, which allowed us to secure assets, create value and maximize the return for our investors.”
With a moderate leverage of up to 65%, Velocis Fund II will have a purchasing power of $800 million. It will target financially distressed or under-managed properties between $20 million and $70 million, although it will also consider larger asset purchases as well as portfolio buys. Over a three-year period, the fun will purchase about 25 properties.
The initial fund, Velocis Fund I, had its final closing in March 2013 and is already 76% deployed with roughly $305 million of assets under management.
“We currently have a few deals in the contract stage and anticipate having Fund I fully deployed by late Q3 of this year,” Hamm says.
In addition to Hamm, Paul Smith, Mike Lewis, Jim Yoder and David Seifert will be principals for Fund II.
“Velocis' team understands how to source, acquire, manage and add value to commercial real estate as well as any group of managers in the industry,” Smith says.
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