Eastern Real Estate LLC and Highfields Capital Management have formed a fully committed $1 billion joint venture that will acquire high-yield commercial real estate debt, provide preferred equity and purchase high-quality assets to respond to the significant dislocation in the U.S. commercial real estate capital markets.
The exclusive joint venture has been formed by Eastern principals Dan Doherty and Brian Kelly with Highfields co-founders Jonathon S. Jacobson and Richard L. Grubman. Eastern will serve as the joint venture's sponsor and invest its own capital alongside the nearly $1 billion being provided by Highfields.
According to the firms, the joint venture is actively acquiring positions from financial institutions that are seeking to increase their liquidity and provide alternatives for their capital-constrained clients. The two firms have closed on their first series of investments and expect to close approximately $400 million worth of transactions by mid-summer.
‘This is a unique time to acquire quality assets,’ notes Grubman. ‘Partnering with Eastern uniquely positions each of our firms to capitalize on this opportunity and deliver substantial returns to our investors.’
Sources: Eastern Real Estate LLC, Highlands Capital Management
