By Jon Peterson
New York City-based Westbrook Partners has concluded its capital raise on its last commingled fund, Westbrook Real Estate Fund XI. The total amount of equity raised for the fund was $2.54 billion, according to sources that track large capital raises by real estate managers on a global basis.
One of the commingled fund’s target investment markets would be the San Francisco Bay Area. Westbrook has already made inroad across the region through several investments, so it is not surprising to see that this fund, too, would continue the company’s focus in Northern California. Also, the real estate manager has a regional office in San Francisco located at Embarcadero Center 1, according to the manager’s website, so the infrastructure and resources across the region can easily be deployed. In addition, Westbrook has a number of other regional offices located around the globe. These include Los Angeles, Boston and Washington, D.C. in the United States and internationally in London, Munich, Paris and Tokyo.
The final amount of capital raise hit the target that Westbrook had established when it began to raise capital for the fund, according to industry sources. It had set a hard cap on the commingled fund of $2.95 billion.
The commingled fund will be looking for a mixture of value-add or opportunistic investments that can produce net IRRs in the mid-teens range, according to information provided by the New York State Common Retirement Fund. This pension fund became one of the last major investors to come into the fund when it approved a total commitment of $300 million. This capital was split with $200 million that was placed directly into the fund and another $100 million that is to be used for co-investments alongside the commingled fund.
For Fund XI, Westbrook will be looking at an investment mixture of single assets and portfolio transactions. Among the property types that it will be considering for investment are office, hotels, retail and industrial properties.