ACRE Closes Its Fourth Fund With Investment from OPTrust

Real Estate

ACRE, capital commitment from OPTrust


Summary

Asia Capital Real Estate (“ACRE”), a global real estate private equity firm that manages capital for institutional and family office investors, recently announced the close of its fourth fund, ACRE Credit I, after securing a capital commitment from OPTrust.

Baird acted as financial advisor to ACRE for a strategic investment from Almanac Realty Investors (“Almanac”) and a strategic fund commitment from OPTrust.

About

ACRE launched the fundraising process for ACRE Credit I in Q1 2020 and ultimately raised over $325 million of commitments, well in excess of its $300 million target.

ACRE Credit I provides first mortgage bridge loans, mezzanine loans and preferred equity to best-in-class multifamily owner-operators secured by institutional grade real estate across the U.S. In a low-yield environment, the Fund is intended to generate double-digit interest rates and target IRRs in the low- to mid-teens. Almanac Realty Investors, the private real estate investment arm of Neuberger Berman, made a $320 million capital commitment to the ACRE platform, including various funds managed by ACRE. A large percentage of Almanac’s commitment was allocated to ACRE Credit I, a testament to ACRE’s lending platform and its proven track record.

To date, ACRE Credit I has raised more than $325 million of equity since its launch and has since closed and committed to provide more than $700 million whole loans across 17 transactions. These loans are meant to support the acquisition, lease-up, redevelopment and recapitalization of multifamily assets in growing secondary markets such as Miami, Fla.; Durham, N.C.; Cincinnati, Ohio; Orlando, Fla., Charleston, S.C.; and Dallas, Texas.

Asia Capital Real Estate (ACRE), founded in 2011, is a global real estate private equity firm managing capital for institutional and family office investors through a series of private equity and debt funds and currently has more than $1.8 billion in assets under management. Since its inception, ACRE’s acquisition, development and lending efforts have spanned 22,000 units across 78 properties in 33 cities. ACRE’s strategies focus on direct real estate equity and credit investments and are concentrated in high growth markets in the United States, with additional properties currently in development in Southeast Asia and the United Kingdom. ACRE manages a global multifamily housing portfolio with offices in Atlanta, New York and Singapore.

Almanac Realty Investors is a leading provider of growth capital to public and private real estate companies. Neuberger Berman acquired Almanac in January 2020 to deepen its offering of real estate solutions. Originally founded in 1981 under the name Rothschild Realty, Almanac Realty Investors partners with established owner-operators in all sectors of the real estate market to raise capital to fuel company growth and has committed more than $6.4 billion in capital to 48 real estate companies, both public and private, throughout North America.

Neuberger Berman, founded in 1939, is a private, independent, employee-owned investment manager. The firm manages a range of strategies—including equity, fixed income, quantitative and multi-asset class, private equity, real estate and hedge funds—on behalf of institutions, advisors and individual investors globally. With offices in 25 countries, Neuberger Berman’s diverse team has over 2,300 professionals. For seven consecutive years, the company has been named first or second in Pensions & Investments Best Places to Work in Money Management survey (among those with 1,000 employees or more). In 2020, the PRI named Neuberger Berman a Leader, a designation awarded to fewer than 1% of investment firms for excellence in Environmental, Social and Governance (ESG) practices. The PRI also awarded Neuberger Berman an A+ in every eligible category for our approach to ESG integration across asset classes. The firm manages $433 billion in client assets as of June 30, 2021.

With net assets of over $23 billion, OPTrust invests and manages one of Canada's largest pension funds and administers the OPSEU Pension Plan (including OPTrust Select), a defined benefit plan with over 98,000 members. OPTrust is a global investor in a broad range of asset classes including Canadian and foreign equities, fixed income, real estate, infrastructure and private markets, and has a team of highly experienced investment professionals located in Toronto, London and Sydney.
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Real Estate

ACRE, capital commitment from OPTrust

Date
September 2021
Company
ACRE
Transaction
Capital Advisory & Restructuring
Sectors
Real Estate
Verticals
Real Estate
Target Location
North America
Acquiror Location
North America

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