Baar-Zug, Switzerland, 1 October 2014
Partners Group closes world's largest real estate secondary program at USD 1.95 billion hard cap
Partners Group, the global private markets investment manager, has closed the largest dedicated real estate secondaries program ever raised in the market at its hard cap of USD 1.95 billion.
Partners Group said interest from institutional investors across the world led this program to be heavily over-subscribed. The program, Partners Group Real Estate Secondary 2013, will be invested globally on behalf of its clients and has already acquired several property portfolios via the secondary market. Partners Group, which has long been engaged in global real estate investment, had total real estate assets under management of more than USD 8 billion as of 30 June 2014.
Marc Weiss, Partner and global Head Private Real Estate Secondaries, states: "The demand for this program highlights intense interest from institutional investors across the world for access to this real estate investment strategy. We are the market leader in the field of real estate secondaries and we believe this growing investment area is now coming of age, as underscored by the closing of our 2013 program."
Claude Angéloz, Partner and global Co-Head Private Real Estate, adds: "Our secondary real estate programs bring liquidity to a traditionally illiquid market, broaden the source of returns available to investors and enable institutional investors to enjoy greater flexibility in their overall real estate investment strategies."
Partners Group is the world's largest manager of private real estate secondaries. The firm has an overall global platform of 480 investment professionals and a broad network of industry relationships, which give it market-leading sourcing and screening abilities. Partners Group's investment team has screened over USD 100 billion in real estate secondaries deal flow since the global financial crisis and transacted very selectively, investing in USD 2.7 billion of this.
Partners Group Real Estate Secondary 2013 was formed to acquire real estate portfolios, including single assets and joint venture portfolios, on the secondary market on behalf of Partners Group's clients. At the time of the final close, it was already about 20% committed to investments, including Partners Group's recent acquisition of a retail and office portfolio in Finland and Sweden and the purchase of a real estate development portfolio via Trophy Property Development in China in August. Both of these investments involved portfolio restructurings, in which Partners Group was able to tailor a solution that benefitted all parties and allowed for further value creation of remaining assets.
Stefan Lempen, Senior Vice President, Private Real Estate Secondaries, comments: "The real estate secondaries market is quickly becoming as institutionalised as its private equity equivalent and there has been a notable increase in both the volume and complexity of the transactions we're seeing coming to market. We are focusing on buyout opportunities with the potential for further value creation, such as restructurings of mature real estate portfolios and other complex portfolio management scenarios."
Investors in Partners Group Real Estate Secondary 2013 include a mix of new and existing institutional investors from sovereign wealth funds, public and corporate pension plans, endowment funds and foundations, to insurance companies and financial institutions from around the world.
The predecessor to the 2013 program, Partners Group Real Estate Secondary 2009, raised a total of USD 1.5 billion in 2010 and is already fully committed.