Macquarie Asset Management announces final close of global opportunistic real estate fund

Macquarie Asset Management (MAM) today announced the final close of Macquarie Real Estate Partners (MREP), an opportunistic real estate fund with approximately $US1.9 billion of equity to deploy under a global strategy.

MREP is the second vehicle in Macquarie Asset Management Real Estate’s opportunistic fund series, following the Asia-Pacific opportunistic real estate partnership (MREP Asia 1), which held its final close in 2021 and is now deployed across developed markets in the region.  

With a global mandate focused on predominantly developed markets, MREP has attracted $US1.9 billion of equity to deploy across a combination of fund commitments and co-investment demand, from a strong contingent of institutions, including pension and sovereign wealth funds in Australia, Canada and the Middle East.

The series’ strategy leverages Macquarie Asset Management’s track record and experience investing in and partnering with specialist operators and aims to create a diversified portfolio targeting real estate sectors aligned to the key global themes of technology, demographic shifts and sustainability.

To date, capital from MREP has been deployed across the logistics, living and new economy office sectors. This includes: logistics warehousing groups, Logistics Property Company in the US and Unified Industrial in Asia-Pacific; rental housing platform, Goodstone Living in the UK; European sustainable office developer, Edge and a partnership with US self-storage specialist, LaTerra Storage.

The portfolio also includes an investment in a land lease community business in Australia, which will service the residential housing requirements for the growing over 55 demographic.

These investments and partnerships with specialist operators aim to enhance MREP’s access to real estate opportunities that the real estate cycle presents over the next 12-18 months.

The broader series has also invested in an Australian build-to-rent platform, Local Residential, and specialist residential community developer, Winton in New Zealand.

Eric Wurtzebach, Global Head of Real Estate at Macquarie Asset Management, said: “We have a long history of investing in specialist operators and we are delighted to secure the close of our second opportunistic vehicle leveraging this strategy. Our existing and new investors have demonstrated strong support for this strategy which both enhances our access to high quality real estate and provides an opportunity to generate alpha.”

Macquarie Asset Management’s Real Estate division is a global real estate investment business with a track record of identifying and investing in sectors backed by global megatrends. The Real Estate team has over 50 investment specialists across 10 cities with experience in investing in specialist operators, seeking to enhance access and returns. The Real Estate team’s deep network, cultivated over 35 years, and differentiated approach, enables Macquarie Asset Management to create institutional real estate investment opportunities in hard to access sectors.