Baar-Zug, Switzerland, 1 October 2015
Partners Group, the global private markets investment manager, has completed the purchase of a tail-end portfolio of US real estate assets operated by DLJ Real Estate Capital Partners (DLJ) on behalf of its clients. The portfolio, which includes seven assets with a gross asset value of USD 163 million, was acquired via a secondary transaction.
Partners Group acquired the portfolio from a 1999-vintage program which had previously been extended. The secondary transaction provides an exit for the program's original investors, while allowing for the further development of the remaining significant assets. These include two hotels, one in New York and the other in Tennessee, and two developable land parcels in California. Partners Group retained DLJ to continue managing the assets. DLJ will consult on new business plans for these assets in order to maximize asset-specific strategies over the next three to four years.
Marc Weiss, Partner and Head of Real Estate Secondaries, Partners Group, states: "With our off-market transaction we have enabled an exit for existing investors, while also ensuring the time and capital needed to fully invest in the growth of the remaining assets. Though tail-end secondary transactions are still fairly unusual in the US real estate market, we think 2015 marks the start of a wave of maturing real estate vehicles that are going to create other opportunities for tailored liquidity solutions like this one."