CBRE IM Raises $2.1B for APAC Value-Add Real Estate Fund

CBRE Investment Management has successfully closed its latest value-add real estate fund for the Asia Pacific region, Asia Value Partners 7 (AVP 7), amassing over $2.1 billion in capital commitments. This figure significantly surpasses the initial fundraising goal of $1.5 billion, demonstrating robust investor confidence in the firm's strategy for the dynamic APAC market. The fund's total equity commitments reached more than $1.8 billion, augmented by an additional $250 million in co-investment capital.

The strategic focus of AVP 7 is on acquiring and repositioning assets to a core standard across developed markets within the Asia Pacific. A substantial portion, at least 80 percent, of the fund's capital deployment is earmarked for the logistics sector, a segment experiencing considerable tailwinds driven by e-commerce expansion and supply chain evolution. With the anticipated inclusion of leverage, AVP 7 is projected to command a purchasing power exceeding $5 billion, to be deployed over a concentrated 36-month investment horizon.

This latest fund attracted a diverse base of 15 institutional investors, comprising both new and returning limited partners from the United States, Europe, the Middle East, and the Asia Pacific region. Notable contributors include The State Pension Fund of Finland, LACERA, and NZ Super. This broad investor appeal echoes the success of previous AVP series funds, which historically drew significant allocations from sovereign wealth funds and pension plans, such as Florida's State Board of Administration.

AVP 7 has already initiated its investment activities, having secured three initial transactions. Among these is a significant logistics development in the Greater Tokyo area. The flagship project involves the construction of the Ichikawa Logistics Center 3, a multi-level facility spanning 109,631 square meters. Situated in Chiba prefecture, this bayfront development benefits from its proximity to central Tokyo, less than 20 kilometers away, and is located in a submarket characterized by zero vacancy, presenting an ideal environment for a high-quality logistics asset with dual-access ramps.

The strong performance in fundraising and the strategic allocation towards logistics align with broader market trends. The APAC logistics real estate market has seen sustained demand, with vacancy rates in key hubs remaining exceptionally low. CBRE IM's extensive track record in this sector, with 139 logistics investments totaling 9.5 million square meters and a cumulative asset value of $14.7 billion across APAC, underpins the firm's expertise and the fund's potential for value creation.

Adrian Baker, President and CIO of APAC Direct Real Estate at CBRE IM, highlighted the region's enduring appeal, stating, "The APAC region continues to offer compelling opportunities for value creation." Yilan Koh, APAC Direct Head of Product Development and Operations, added that the successful fundraising within 15 months, validated by leading consultants, reflects a strong conviction in their established strategy.