SAN FRANCISCO, Feb. 19, 2014 — Farallon Capital Management, L.L.C. (“Farallon”) today announced the completion of fundraising for Farallon Real Estate Partners (“FREP”), a U.S. real estate investment pool with commitments of$375 million.
“Farallon has been investing in real estate for over 20 years,” said Andrew Spokes, Farallon’s Managing Partner. “Over that period we have allocated well over $3.2 billion of capital to more than 130 transactions in income-producing properties. Raising dedicated commitments allows us to pursue an investment program tailored to this strategy, fulfilling a targeted investor mandate. The current commercial real estate market plays to the strengths of our U.S. real estate team and we are looking forward to investing these new commitments for our partners.”
FREP is targeting income-producing office, multifamily, retail, and industrial properties and will seek to take advantage of Farallon’s unique insights, proprietary deal flow, capital market relationships and global reach.
“We are honored by the strong support of the Farallon investors who have contributed and we are excited to welcome new investors who share our enthusiasm for the evolving opportunity set in real estate,” said Rocky Fried, managing member at Farallon. “We are committed to being a strategic provider of capital and asset management expertise. Over the next three years we see the real estate industry continuing to restructure with capital in shorter supply for off-the-run assets and situations.”
Investors in FREP include endowments, foundations, family offices and corporate pension plans.
“Consistent with our focus on fundamentally sound yet undervalued assets, we have recently made several investments in cities with significant job growth and higher barriers to entry, where we are able to purchase properties at a discount to replacement cost,” said Dan Hirsch, managing member at Farallon. “Some of these investments are burdened with complicated and broken balance sheets, but we believe this is where we will be able to differentiate ourselves through our research, skills and experience.”
Farallon ‘s U.S. Real Estate Team is co-headed by Fried and Hirsch who are supported by a team of 8 investment professionals. Both Fried and Hirsch have spent over 10 years at Farallon.
Farallon Capital Management, L.L.C. is a global institutional asset management firm founded in 1986. Farallon manages approximately $19 billion for institutions, including college endowments, charitable foundations and pension plans, and for high net worth individuals. Farallon employs approximately 160 employees. Farallon is headquartered in San Francisco and has offices in London, Singapore, Hong Kong, Tokyo and Sao Paulo. Farallon invests in public and private debt and equity securities, direct investments in private companies and real estate. More information about Farallon may be found at www.faralloncapital.com.