Daily market intelligence on mortgages, equity raising, investment sales, and CMBS.

Thursday, 17 December 2015

Lone Star Gears Up for Another Mega-Fund

Just seven months after raising $5.8 billion of equity commitments for Lone Star Real Estate Fund IV, its sponsor, Lone Star Funds, is gearing up to raise a targeted $5 billion for a follow-up. The quick turnaround is necessitated by the large portfolios that Fund IV has acquired in recent months.

Commercial Real Estate Direct Staff Report

Lone Star Funds is getting its capital-raising machine back into gear to raise a projected $5 billion for a follow-up opportunistic real estate fund.

The Dallas investment manager, which only in May completed raising $5.8 billion for its Lone Star Real Estate Fund IV, is already laying the groundwork for Fund V, according to a regulatory filing.

Fund IV, like previous Lone Star vehicles, was designed to pursue opportunistic returns from the purchase of commercial real estate debt and equity. In a presentation before the Rhode Island State Investment Commission, among its investors, Lone Star said it would pursue an internal rate of return of 25 percent. It aimed to invest up to 80 percent of its capital in Europe, with the remainder split roughly evenly between Japan and the United States.

The 25 percent IRR is not outrageous, given that Fund III generated a 23.7 percent gross IRR and 19.4 percent net IRR as of the end of last...





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Data Digest

 

CMBS DELINQUENCY VOLUME

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CMBS SPECIAL SERVICING VOLUME

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Top Bookrunners Domestic, Private-Label CMBS - 2017
Investment Bank #Deals Vol$mln MktShr%
Goldman Sachs 17.59 11,819.34 13.68
JPMorgan Securities 14.52 10,968.11 12.70
Citigroup 12.04 10,012.71 11.59
Wells Fargo Securities 14.02 9,936.06 11.50
Deutsche Bank 12.55 9,879.74 11.44

 

RCA CPPI

 

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CMBS 2.0 Spreads

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Top CMBS Loan Contributors - 2017
Lender #Loans Vol$mln MktShr%
Goldman Sachs 146.89 11,719.34 13.63
JPMorgan Chase Bank 117.68 10,114.14 11.76
Deutsche Bank 198.48 9,689.97 11.27
Morgan Stanley 166.18 8,539.78 9.93
Citigroup 199.05 8,088.24 9.41

 

 

 

REITCafe

  • Challenging Retail Environment Weights on REITs
    Mixed economic news is weighing on retail markets, pushing REIT performance down in 2015. This week, the National Retail Federation announced that back-to-school spending is expected to be down 9.3% in 2015. This news came on the heels of a report from the Commerce Department stating that retail sales declined 0.3%...
     
  • US REITs Feeling Effects from Turmoil in Greece and China
    International economic forces have taken center stage this week, affecting both US stock markets and REITs. The crash in the Chinese stock market and ongoing concerns about the future of Greece in the eurozone drove markets down during the first half of the week. REITs fared better than the overall market...

  • What Does Increased Construction Mean for Apartment REITs?
    REITs so far this year have raised $17.1 billion of capital through the sale of unsecured notes, bringing the total raised over the past two and a half years to just more than $75 billion. That’s more than they raised during the previous five years. The massive volume shouldn’t be a surprise as it comes while the yield from 10-year Treasury bonds, the benchmark...
shouldn’t be a surprise as it comes while the yield from 10-year Treasury bonds, the benchmark against which most REIT’s price their bonds
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