The Hampshire Companies, a full-service, private real estate investment fund manager, announced the final closing of Hampshire Partners Fund VI, a commingled, discretionary value-added real estate investment fund, and the sixth fund to be closed by Hampshire. The Fund raised $235 million from 15 investors; including endowments, foundations, insurance companies and public and private pension funds. Hampshire has a $10 million co-investment in the fund. The fund expects a leveraged rate of return, net of fees, of 16 to 19 percent.
The investment focus for the fund is on diversified value-add opportunities in the industrial, retail and suburban office asset classes located in the growth corridors of the Northeast and Mid-Atlantic.
Hampshire is already 15% invested, having purchased 7 assets with an aggregate value of $100 million. With its present pipeline, the fund should be 40% invested by the Second Quarter, 2005. The target leverage for the fund is 60% to 65%. Therefore, the Fund will be acquiring approximately $600 million of real estate during the 3-Year Investment Period.
“We are extremely proud of the interest and consideration that this fund offering achieved in the institutional investor marketplace,” noted James E. Hanson II, President of The Hampshire Companies. “Our previous investment funds were
targeted toward high net worth individuals, and entering into the institutional investor marketplace was the next logical step in our business growth. This is a sophisticated market that demands performance, value and results, and we are particularly pleased that we have been able to deliver an investment vehicle that will meet and exceed the complex demands of this community.
“Being real estate operators, the success of our fundraising efforts puts us in an extremely competitive position relative to our competitors, as it allows us to quickly commit to opportunistic real estate investments in our core markets by having discretionary capital at our fingertips,” continued Hanson. “We expect market and economic conditions going into 2005 and beyond will make this an ideal time for investment in industrial, retail and suburban office assets in the Northeast and Mid-Atlantic regions. We look forward to building upon the success of our predecessor real estate funds by providing exceptional returns to our investor base.”
The Hampshire Companies is noted for its strategic vision and superior execution. “We have built our firm on the belief that real estate is both an art as well as a science,” said Hanson. “Our strategic vision – the ‘art,’ so to speak, allows us to seek out superior investment opportunities for our funds, and to visualize opportunities where others see only challenges. The ‘science’ is revealed in our ability and resources to execute on our strategic vision faster and with better results than most other real estate firms.”
“We will be very active in the acquisition market as we move swiftly into the investment phase of the Fund,” noted Hanson. “We encourage both principals and brokers to contact us with opportunities that fit within our stated strategy of acquiring properties in the Northeast and Mid-Atlantic regions.”
The Hampshire Companies is a full-service, private real estate investment fund manager based in Morristown, New Jersey. The Hampshire Companies is a vibrant, dynamic organization that combines creative vision and superior execution, thereby enabling it to create and enhance value in real estate investments in order to consistently outperform the market. Additional information on The Hampshire Companies and its funds is available online at www.hampshireco.com.