Source: Behringer Harvard / #Apartments #Multifamily
DALLAS, TX - Behringer Harvard Multifamily REIT I, Inc. announced that it has entered into a new $300 million arrangement with PGGM Private Real Estate Fund to co-invest with the REIT in multifamily communities. This new arrangement is in addition to prior investments in which PGGM committed $300 million for co-investment with the REIT in three separate tranches of $100 million.
PGGM, an investment vehicle for Dutch pension funds, currently manages approximately $210 billion in pension assets for more than 2.5 million pensioners.
Since May 2007, PGGM has been a co-investment partner with the REIT. Generally, the REIT and PGGM own 55 percent and 45 percent in each co-investment asset, respectively. From the inception of the relationship through September 30, 2013, PGGM has co-invested with the REIT in 28 multifamily communities with a total capitalized cost of approximately $1.6 billion.
As a result of PGGM's new co-investment arrangement with the REIT, the partners expect to invest about $1.3 billion in multifamily communities over the next several years, taking into account the equity provided by both partners and additional leverage. Upon entry into the new arrangement, PGGM invested in several of the existing REIT development projects and will also target future acquisitions and developments for investment.
"We are excited about this new increase in our PGGM co-investment platform. It represents a significant opportunity to grow the REIT's portfolio and create additional value for our shareholders," said Mr. Mark T. Alfieri, President and Chief Operating Officer of the REIT. "We are pleased to extend our relationship with an institutional real estate investor of the highest caliber. We believe that PGGM's decision to increase, once again, its investment in our U.S. multifamily platform provides further recognition from a highly sophisticated institutional investor of the REIT's investment strategy."