CEDAR RAPIDS, Iowa, Nov. 4, 2019– Aegon Real Assets US (Aegon RA) announced today that it has closed on its first multifamily residential real estate development located within a designated opportunity zone (OZ). The $60 million development, a joint venture between Aegon RA and a subsidiary of Kemper Corporation, is located in downtown Sacramento, California, one of 34 select metro areas that Aegon RA’s proprietary analysis has deemed an attractive OZ market.
This deal is the first development within Aegon RA’s OZ investment strategy, which was launched in January 2019, and is a key component of Aegon RA’s multifamily real estate equity platform.
Aegon RA is a recognized leader within the tax-advantaged private real estate market, with over 30 years of experience in financing, developing and managing multifamily residential assets within economically-distressed communities across the US. Through its national low-income housing tax credit (LIHTC) business, the firm has acquired over $4.8 billion of tax credit real estate private equity investments since 1987 and helped create over 120,000 units of affordable housing in all 50 states. Aegon RA manages 430 LIHTC partnerships and has funded $7.7 billion in multifamily loans since 2007.
“Our entrance into the OZ space is made possible in large part by the firm’s long history and experience in multifamily investing via the LIHTC platform. Through our deep relationships with developers and local businesses, we established a robust pipeline of potential multifamily acquisition targets, a good deal of which are located in OZ markets. The OZ initiative supports our firm-wide commitment to responsible investing whereby we can help spur investment and housing development in OZ communities,” said Christoph Gabler, Co-Head of Aegon RA.
“Aegon RA currently manages a $2.7 billion portfolio of multifamily assets located in OZs, which positions us as a uniquely qualified OZ sponsor,” said Philip J. McAndrews, Head of Real Estate Equity. “Investing in OZs is one of several key initiatives we are implementing to expand our real estate equity platform.”
The 2017 Tax Cuts and Jobs Act created a new incentive to encourage investment in economically distressed areas (over 8,700 census tracts) designated as OZs. An investment in an OZ can defer, reduce and eliminate some of an investor’s capital gains tax liability.
About Aegon Real Assets US
Aegon Real Assets US (Aegon RA) is the primary real assets investment center in the US for Aegon Asset Management, a leading global investment manager with $386 billion (as of June 30, 2019) in assets under management/advisement.
With over 30 years of experience, Aegon RA provides yield-oriented private debt and equity strategies and specialty solutions for insurance company and other institutional clients. The firm is built upon a vertically integrated platform, deep and broad market access and long-term relationships.
Aegon RA’s multi-disciplined, fully-integrated team of approximately 200 professionals manages/advises $21 billion (as of September 30, 2019) in real assets backed by a full range of support services.
As of October 2019, there is uncertainty regarding future IRS and Treasury Department guidance on Opportunity Zones. Prospective investors should consult with their tax advisor before making any investment into an Opportunity Zone investment vehicle.
The information presented should not be construed as investment advice regarding any security or other investment, a recommendation for the purchase or sale of any security or other investment, or an offer to sell or solicitation of an offer to purchase any security or other investment. The information has been developed internally and/or obtained from sources believed to be reliable; however, Aegon RA does not guarantee the accuracy, adequacy, or completeness of such information. This material contains general information only on investment matters; it should not be considered as a comprehensive statement on any matter and should not be relied on as such. The information it contains does not take into account any investor’s investment objectives, particular needs or financial situation.
This document contains “forward-looking statements” which are based on change to the firm’s beliefs, as well as on a number of assumptions concerning future events based on information currently available. These statements involve certain risks, uncertainties and assumptions which are difficult to predict. Consequently, such statements cannot be guarantees of future performance and actual outcomes and returns may diﬀer materially from statements set forth herein. In addition, this material contains information regarding market outlook, rates of return, market indicators and other statistical information that is not intended and should not be considered an indication of the results of any Aegon RA-managed portfolio.
Aegon Asset Management is the global investment management brand of the Aegon Group N.V. and is comprised of Aegon USA Investment Management, LLC (“Aegon Asset Management US”), Aegon USA Realty Advisors, LLC (“Aegon Real Assets US”), Kames Capital plc (“Kames Capital”) and other Aegon affiliates. Aegon Asset Management US, Aegon Real Assets US, and Kames Capital are SEC registered investment advisers.