Logistics investor Cabot Properties has closed its biggest fund to date above target at nearly $1.6bn (£1.2bn).
Cabot’s Value Fund VII seeks to invest $3.5bn in industrial acquisitions, developments and redevelopments in the US, Europe and Asia-Pacific.
The private equity firm said the fund’s investors are a diverse mix of global institutions including endowments, foundations, public and corporate pensions, asset managers and family offices.
The fund will target investments mainly in multi-let buildings measuring between 50,000 sq ft and 250,000 sq ft, with the majority of capital being deployed in the US.
Fund VII is part of the firm’s flagship fund series, which has raised more than $5.75bn of equity. It has closed or committed around $1.2bn of capital to date across 30 investments in markets including Chicago, Atlanta, Seattle, Amsterdam and Sydney.
Franz Colloredo-Mansfeld, chairman and chief executive of Cabot Properties, said: “This past year has been a challenging time to raise capital. Generally, the point in the cycle when it is most difficult to raise capital can be the best time to invest capital.
“Almost 90% of the commitments came from our existing investors, and we are very grateful for the strong support we received from our long-time partners, many of whom have invested with us for more than 20 years beginning with Value Fund I.”
Pat Ryan, president and chief investment officer for the investor’s value fund programme, said Cabot will “leverage our decades of experience, cycle-tested strategy and global platform to prudently construct a diversified portfolio in a market that presents a unique set of opportunities and challenges”.
Cabot is headquartered in Boston with offices in London, Atlanta, Chicago, Dallas, Los Angeles, Amsterdam, Sydney and Tokyo.
Photo © Marcin Jozwiak/Unsplash
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