CBRE GMM reaches final close on Asia real estate fund

AAPIII is the third in a series of closed-end funds targeting private equity real estate in the Asia Pacific region. It will invest in club deals, co-investments and joint ventures, utilizing CBRE's local presence and market intelligence in the Asia Pacific region, according to a release. The fund is seeking an IRR of 15% per annum net of all fees and expenses.

The two predecessor funds in the series have generated IRRs of 13.4% and 21.1% per annum, respectively, since inception.

"We continue to see opportunities in the Asia Pacific region," said Adrian Baker, the fund manager. "And AAPIII will focus on investments that have a high proportion of pre-specified assets and those with a high proportion of the return coming from income."

The AAPIII close contributed to a successful first half of 2014 for GMM, which has also raised $844 million for separate accounts and $118 million for the CBRE Global Alpha Fund, its flagship global open-ended fund.

According to ACVJ Research, Asia-focused real estate funds have raised $2.6 billion so far this year, compared to $10.9 billion in 2013 as a whole. This includes a $70 million first close by the CBRE China Opportunity Fund II. The vehicle has a full target of $500 million and will invest in Chinese property.

GMM is the independent multi manager division of CBRE Global Investors. It had $13 billion in assets under management as of June 2014, invested in primary funds, club deals, secondaries, joint ventures and co-investments. CBRE Global Investors is a global real estate investment management firm with $92.8 billion in assets under management as of June.

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• Real estate
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• Asia