Private investment firm Centerbridge Partners L.P. has closed its second real estate fund, which will target self-storage and other real estate investments. Centerbridge Partners Real Estate Fund II (CPREF II) received $2.3 billion in capital commitments, beating its original target of $1.5 billion, according to a press release.
In addition to self-storage, the fund will pursue investments in digital real estate as well as industrial, residential, “specialized storage” and other sectors including leisure and experiential real estate, the release stated. The capitalization of CPREF II is more than a 150% increase from the company’s first fund, which closed in December 2018.
“We continue to see real estate markets evolve as technology accelerates demand for asset classes from logistics to digital real estate and impacts how companies serve customers in residential, storage and leisure sectors,” said William Rahm, senior managing director and head of real estate. “The flexibility of our strategy and the breadth of our team’s capabilities position us well to invest strategically in this dynamic environment. We look forward to identifying a diverse range of investments where we see strong growth and an opportunity to create significant additional value for our investors.”
Last year, a joint venture between Centerbridge, Singapore sovereign wealth fund GIC Private Ltd. and self-storage real estate firm Merit Hill Capital acquired 57 self-storage facilities from Prime Storage Holdings LLC for $636 million.
Centerbridge is a multi-strategy, private-investment firm focused on leveraged buyouts and distressed securities. Based in New York, it has approximately $33 billion in capital under management. In the last 15 years, it’s invested more than $10 billion in real estate properties and other interests across its platform. The firm’s real estate team manages about $3.2 billion in assets, according to the release.
Source: The Salamanca Press, Centerbridge Partners Surpasses Target to Close Second Real Estate Fund at $2.3 Billion