LOS ANGELES—CBRE Global Investors said Monday it had closed on its latest value-added fund targeting the Asia Pacific region. With a focus on the logistics sector, CBRE Asia Value Partners IV and its co-investment vehicles have equity commitments totalling $1 billion from 21 institutional investors worldwide.
The new fund and its co-investment vehicles are expected to have total purchasing power of more than $2.5 billion, including leverage. Already, the investment team has acquired or committed to $1.1 billion of real estate through five investments, primarily in logistics assets across Japan, China and South Korea.
“Forecasts of private consumption growth in Asia Pacific are notably higher than in other major regions,” says Adrian Baker, CBRE Global Investors' CIO for Asia Pacific. “Additionally Asia Pacific e-commerce sales as a percentage of total retail sales are the highest of all major regions and are expected to continue to grow at a faster pace. These factors support the case for investment in modern logistics facilities across the region.”
Asia Value Partners IV represents a continuation and evolution of CBRE GI's regional value-add investment programs. The fund's investment strategy is to create core logistics assets through value-add investment initiatives or de-risked development in the most liquid markets in Asia Pacific, along with selective investments in other sectors and opportunities which offer compelling income returns or mispricing.
“We expect to enhance value through a disciplined, cycle-aware investment and operations strategy,” says Richard Price, CEO—Asia Pacific at CBRE GI. At present, the firm has $10 billion in assets under management invested in the Asia Pacific markets in both public-market real estate equity and core and value-added private equity real estate funds and separate accounts.
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Paul Bubny
Paul Bubny is managing editor of Real Estate Forum and GlobeSt.com. He has been reporting on business since 1988 and on commercial real estate since 2007. He is based at ALM Real Estate Media Group's offices in New York City.
