CBRE Investors has launched a global real estate securities business. The real estate investment management firm has formed CBRE Global Real Estate Securities.
The new business will develop a variety of products such as a high-yield fund, a concentrated risk fund and a global REIT hedge fund – the first of its kind – as well as offering bespoke services for investors. It may also launch a global REIT fund, with daughter funds for different jurisdictions.
CBRE GRES will also team up with banks in order to distribute products to private investors.
CBRE Investors is understood to be targeting assets under management of $2-3bn within two to three years. The global real estate securities market
capitalisation is predicted to double from $500bn to $1trn by 2010.
Robert Zerbst, president of CBRE Investors said: “The aim of this venture is to provide CBRE Investors’ clients with unparalleled securities management expertise across its global real estate platform, thereby providing valuable portfolio diversification, competitive returns and the opportunity to reduce portfolio risk.”
The group has 29 staff, led by chief investment
officers Steve Carroll, based in the US, and Jeremy Anagnos, based in London. Carroll was formerly
a securities portfolio manager with LaSalle Investment Management (Securities). Anagnos
previously headed European real estate equity research at Deutsche Bank in London.
Anagnos said: “The growing REIT-isation of the securities market may enhance short-term returns for investors and will provide increased liquidity, transparency, and diversification in the long term.
“Real estate investors are increasingly seeing securities as an acceptable way to access the asset class. Studies show that, in the long term, they provide real estate-like returns, but of course with more volatility in the short term.” He said the team hoped to launch its first products in the first half of this year.
CBRE Investors is following asset managers such as ING Clarion, LaSalle and Henderson in launching a global real estate securities platform. Major investment banks are also moving into the business.