Lone Star Said to Close $6.6 Billion Real Estate Fund

 

29 10월, 04:29www.bloomberg.com

Bring the power of the most trusted source for financial information right to your mobile device, along with tools to help you analyze the world's markets and more.

 

 Over 300,000 financial professionals around the world trust Bloomberg to give accurate, timely information about the world's money markets.

 

 Bloomberg offers stock quotes, company descriptions, markets leaders/laggers, charts, analysis of market trends by region and country, and more.

 

 You'll also be able to create a customized portfolio of stocks that you want to follow from indices around the world.

 

 The information for these tools comes straight from the BLOOMBERG PROFESSIONAL® service, through the BLOOMBERG.COM® website.

 

 Lone Star Said to Close $6.6 Billion Real Estate Fund

 

 By Hui-yong Yu

 

 Tap 'Save' to

 

 read later

 

 Lone Star Funds, the world’s biggest buyer of delinquent mortgages, finished raising its $6.6 billion commercial real estate debt and equity fund, a person with knowledge of the closing said.

 

 The Dallas-based firm limited the second and last phase of fundraising to $600 million for the pool, Lone Star Real Estate Fund III, said the person, who asked not to be named because the details are private. Demand was so high that Lone Star could only accept one-third of the amount pledged by each investor in the final round, the person said.

 

 Lone Star’s new fund is the biggest raised by a private-equity company for global property investments, according to Preqin, a London-based research firm for alternative assets. Additional capital pledges from Lone Star founder and Chairman John Grayken , the firm’s partners and employees of Hudson Advisors, its asset-management arm, brought the total raised to $7.1 billion, according to the person. Lone Star has said it expects to invest half of the new pool in Europe.

 

 Blackstone Group LP (BX) is raising the largest Europe-only fund, with a target of 5 billion euros ($6.9 billion), according to Preqin. Blackstone, based in New York , has raised about $2 billion for the fund, its fourth focused on European real estate.

 

 Grayken’s firm has produced returns exceeding 20 percent in the past two decades and has never had a losing fund, attracting repeat investments from investors such as pension funds. Lone Star in May finished raising $5.1 billion for a residential-focused pool, Lone Star Fund VIII, which also is buying soured loans from Europe ’s banking crisis.

 

 Jed Repko, a spokesman for Lone Star at the public relations firm Joele Frank, Wilkinson Brimmer Katcher, declined to comment on the new fund.

 

 To contact the reporter on this story: Hui-yong Yu in Seattle at hyu@bloomberg.net

 

 To contact the editor responsible for this story: Kara Wetzel at kwetzel@bloomberg.net