Key Takeaways
- • Lone Star Funds raised $2.7bn (€2.4bn) for Lone Star Real Estate Fund VII (LSREF VII), its latest global opportunistic and value-add commercial real estate fund.
- • The raise is less than half the $4.6bn raised by predecessor Lone Star Real Estate Fund VI, which closed in June 2019, according to IPE Real Assets.
- • LSREF VII will invest across direct commercial real estate equity, debt portfolios and commercial real estate-related operating companies in Europe, North America and Japan.
- • CEO Donald Quintin said the firm anticipates deep-value and special situation opportunities amid a complex and changing real estate landscape.
Summary
Lone Star Funds has raised $2.7bn (€2.4bn) for its latest global opportunistic and value-add commercial real estate fund, Lone Star Real Estate Fund VII (LSREF VII), according to IPE Real Assets. The manager said the vehicle will make investments spanning direct commercial real estate equity, debt portfolios and commercial real estate-related operating companies.
The fund's predecessor, Lone Star Real Estate Fund VI, closed in June 2019 with $4.6bn in commitments, meaning LSREF VII's close represents a significant reduction in capital raised. Other trade coverage has described the raise as less than half of the targeted equity for the vehicle and the smallest real estate fund the firm has raised since 2008, though these characterizations are reported by secondary sources and were not part of the primary announcement.
Donald Quintin, chief executive of Lone Star, said that LSREF VII anticipates deep-value and special situation investment opportunities across Europe, North America and Japan. He added that the firm has been investing in the broader commercial real estate sector for nearly 30 years and believes the current environment is likely to suit its strengths as a disciplined and flexible opportunistic investor.
The fund's predecessor, Lone Star Real Estate Fund VI, closed in June 2019 with $4.6bn in commitments, meaning LSREF VII's close represents a significant reduction in capital raised. Other trade coverage has described the raise as less than half of the targeted equity for the vehicle and the smallest real estate fund the firm has raised since 2008, though these characterizations are reported by secondary sources and were not part of the primary announcement.
Donald Quintin, chief executive of Lone Star, said that LSREF VII anticipates deep-value and special situation investment opportunities across Europe, North America and Japan. He added that the firm has been investing in the broader commercial real estate sector for nearly 30 years and believes the current environment is likely to suit its strengths as a disciplined and flexible opportunistic investor.
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