The largest fund to close in the first quarter of 2010 was Morgan Stanley Real Estate Fund Global, which received commitments of $5.2 billion, making it the fifth-largest private equity real estate fund of all time. The opportunistic fund targets distressed real estate and makes debt investments. It focuses on: opportunities that arise from corporate spin-offs, liquidations and sales of real estate-related subsidiaries; investments in publicly traded or privately held real estate operating companies; and direct real estate assets that provide value-enhancement opportunities. Beacon Capital Strategic Partners VI was the second-largest fund to close in the quarter. The fund is Beacon Capital Partners’ sixth value added fund and focuses on the acquisition, development and management of office properties in select supply-constrained markets in the US and Western Europe.
Other notable funds to close included the $577 million JBG Fund VII, which acquires and develops a diverse mix of properties in the Washington metropolitan area, and the $500 million Garrison Opportunity Fund, which makes investments in asset-based transactions, loan originations/acquisitions and corporate securities.
The largest Europe-focused vehicle to reach a final close was NREP Logistics. Nordic Real Estate Partners raised 1,600 SEK for the fund, which targets prime logistics properties in key hub locations throughout the Nordics.
Click for the full factsheet on Q1 2010 private equity real estate fundraising.