CBRE Global Multi Manager (GMM) has launched a new programmatic joint venture targeting GBP250m of value add and opportunistic transactions in the UK.
The joint venture partner is Palmer Capital.
The programme will target a 15 per cent IRR to investors by undertaking development and active management, as well as acquiring sites with change of use potential, using the expertise of Palmer Capital’s locally based property company network. The institutional capital has been exclusively committed by clients of GMM.
This is the sixth joint venture that GMM has launched in the past 12 months. GMM has formed ventures with Ardstone Capital for one fund to invest in UK regional offices and a second fund to invest in Dublin offices and retail. GMM has also targeted student housing in the UK via a vehicle with Curlew Capital.
Outside of the UK, GMM has a debt fund and neighbourhood shopping centre fund in the US and in Europe a German mezzanine debt fund.
Alex Bignell, head of UK, CBRE Global Multi Manager, says: “This is another important programmatic joint venture for CBRE GMM, allowing our clients’ capital to be matched efficiently to investment opportunities, alongside proven managers, in attractive sub-sectors of the UK market.
“Through our relationship with Palmer Capital, having been investors in several previous funds, we saw an opportunity to establish a customised vehicle for our clients.”
Jeremy Plummer, chief executive, GMM, says: “With this new partnership, the total capital commitments targeted for programmatic joint ventures is over GBP800 million. This approach has allowed quick deployment of capital and has incrementally benefitted our investment performance and governance.
“It is a testament to the scale of our loyal client base who benefit from the extensive local networks of CBRE GMM.”