Private real estate investor Asia Capital Real Estate (ACRE) announced that it has secured $320 million in capital commitments from a fund managed by Almanac Realty Investors, the real estate investment arm of asset management firm Neuberger Berman.
The funding will be for the various funds managed by ACRE and will serve as anchor investments in the PE firm’s upcoming series of real estate private equity and debt funds that will focus on multifamily investments.
ACRE, founded in 2011, manages a global portfolio with offices in Atlanta and New York in the US, and Singapore. It aims to invest over $2 billion through its upcoming PE funds and has already deployed over $300 million in loans.
The PE firm said Almanac’s $320-million commitment comes amid a volatile year in the commercial real estate industry, as investors wrestle with market disruption brought on by the COVID-19 pandemic.
ACRE added that it will avoid exposure to areas of the real estate market that have been adversely affected by the pandemic, such as retail and hospitality.
“Middle-market multifamily assets offer a more stable long-term outlook than many other areas of the market, and sponsors are growing increasingly aware of the asset class’s merits and differentiating factors,” said ACRE Founding Partner Michael Van Der Poel.
Since its inception, ACRE has acquired, operated, developed, and made loans on over 22,000 apartments across 75 properties and 31 cities. Its strategies focus on direct real estate equity and credit investments and are concentrated in the US, with additional properties currently in development in Southeast Asia and the UK.
The investor, Almanac Realy Investors, partners with established owner-operators in all sectors of the real estate market to raise capital to fuel company growth and has committed more than $6.1 billion in capital to 46 real estate companies, both public and private.
Neuberger Berman acquired the firm in January 2020 to deepen its offering of real estate solutions.