ACRE - Asia Capital Real Estate Announces $320 Million Commitment From Almanac Realty Investors

Commitment from Neuberger Berman unit will be deployed across a series of debt and equity funds

January 19, 2021, New York, NY - Asia Capital Real Estate (“ACRE”), a global real estate private equity firm managing capital for institutional and family office investors, today announced that a fund managed by Almanac Realty Investors, the private real estate investment arm of Neuberger Berman, has made a $320 million capital commitment to various funds managed by ACRE. The investment will serve to provide strategic growth capital to ACRE’s general partner and investment manager as well as anchor investments in their upcoming series of real estate private equity and debt funds, focused on multifamily investments.

ACRE aims to invest over $2.0 billion through its upcoming private equity funds, and it has already deployed over $300 million in loans, with the support of Almanac and other investors.

“We’re very pleased to have an asset management firm as prominent as Neuberger Berman and Almanac invest in ACRE with a commitment of this magnitude and equally honored to partner with Almanac’s experienced and highly respected team to help grow our platform and broaden our relationships with institutional investors and allocators,” said ACRE Founding Partner Les Menkes. “This timely capital infusion serves as a testament to our proven investment, development and management strategies and the track record of success we’ve built over the last decade.”

Almanac’s $320 million commitment comes in the midst of a volatile year in the commercial real estate industry, as investors wrestle with market disruption brought on by the COVID-19 pandemic. As a vertically integrated real estate private equity firm and direct multifamily lender that specializes in the acquisition, development and management of value-add workforce and affordable housing properties in strategic growth markets across the United States, ACRE is well-positioned to provide an alternative for investors seeking to avoid exposure to areas of the real estate market that have been adversely affected by the COVID-19 pandemic, such as retail and hospitality.

“The uncertainty of the current economic climate has had acute effects for commercial real estate, which is causing many investors to seek out funds with a more secure risk-return profile,” said ACRE Founding Partner Michael Van Der Poel. “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. ACRE’s experience in this area and creative structuring approach offer a natural advantage in the sector, and we are grateful to have the backing of Neuberger Berman and Almanac as we successfully navigate a rapidly evolving market and accelerate our relationships with global institutional investors.”

"ACRE has a successful track record in the multifamily sector, spanning equity and credit investments and property management, which in combination with positive long-term fundamentals in the multifamily space should lend itself to both attractive real estate opportunities as well as the continued growth of a best-in-class, vertically-integrated multifamily platform," said Justin Hakimian, Managing Director at Almanac.

Neuberger Berman acquired Almanac in January 2020 to deepen its offering of real estate solutions. Founded in 1981, Almanac Realty 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, throughout North America. Various partners include Mack Real Estate Group, RXR Realty, CA Ventures, Slate Asset Management, ReNew Senior Living and Westcore Properties, among others.

Independent and employee-owned financial services firm Baird served as exclusive financial advisor to ACRE on the transaction, led by Jim O'Brien of Baird's Real Estate Investment Banking team.