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Velocis Fund announces first fund closing

Velocis Fund has met its first fund closing target. The real estate private equity fund accepted USD36.5 million in capital commitments and an additional USD4.7 million of co-investment equity for a total of USD41.2 million of equity under management. Incorporating maximum leverage of 60 per cent, this first closing will give Velocis Fund approximately USD100 million in purchasing power.

"This closing has taken our fund from concept to reality," says Fred Hamm, Velocis managing principal. "We are carrying out our original stated strategy and are continuing to pursue real estate assets that meet our investment criteria. While excited about this first closing, we continue our steady, disciplined approach to raising capital and are looking forward to celebrating a second closing in early 2012. Looking ahead to 2012, we are enthusiastic that our investment capital is increasing and our acquisition pipeline is growing. We are confident that 2012 will present some attractive buying opportunities."

Velocis is seeking to raise a total of USD150 million in equity from sophisticated, high-net worth investors in the United States, Mexico and Europe. With moderate leverage, this will provide buying power in excess of USD350 million. The Fund anticipates a second closing in the first quarter of 2012.

Velocis announced its first acquisition in March 2011 when it purchased the Jefferson Building, a 97,552-square-foot medical office building located in Austin, Texas. With several leases completed in the last six months, occupancy in the Jefferson has increased to over 87%. Rental rates throughout the property are meeting or exceeding expectations, and the current yield to the Fund from the Jefferson investment is above pro forma.

The Fund targets US real estate assets in demand driven/supply constrained markets in the USD10 million to USD55 million range, focusing on core-plus office, medical office and retail real estate investments. The Fund is specifically sized to acquire a diversified portfolio of assets that may be too large for an individual investor, but too small for many large institutional investors.

Originally introduced to investors as Valeo Fund in early 2010, Velocis Fund is led by an experienced team of professionals with expertise in all aspects of commercial real estate, as well as in managing the assets of high-net worth individuals. In addition to managing principal, Fred Hamm, are principals: Mike Lewis, formerly a top officer at Crescent Real Estate Equities; Steve Lipscomb, former National Director of Archon Retail; and Jim Yoder, previously a Managing Director of Jones Lang LaSalle.

 

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