CenterSquare and Temasek Launch $100 Million Real Estate Investment Initiative

CenterSquare and Temasek Team Up for a $100 Million Co-Investment Vehicle

CenterSquare Investment Management has just announced an exciting venture with Temasek, a renowned global investment company based in Singapore. This partnership marks the establishment of a $100 million commercial real estate debt co-investment vehicle. When fully operational, this vehicle is expected to manage assets worth up to $200 million focused on high-quality subordinate real estate loans.

This initiative builds upon the long-standing strategy of CenterSquare's Debt Fund Series, which has been effectively operational since 1999. The primary goal here is to achieve risk-adjusted returns comparable to equity, primarily through mezzanine loans and preferred equity investments that are backed by rental assets that demonstrate sturdy cash flows.

In the current financial landscape, characterized by elevated interest rates, many borrowers face difficulties securing sufficient mortgage funds as previous low-rate opportunities dry up. Michael Boxer, Managing Director of CenterSquare's Private Real Estate Debt division, highlighted that this scenario creates a unique opening for disciplined investors seeking attractive returns. He expressed enthusiasm for this collaboration with Temasek, pointing out their team’s strong reputation in the investment world.

The initial capital tranche is set to be allocated alongside CenterSquare’s latest debt fund, focusing primarily on pre-identified projects. True to the other funds in the Debt Fund Series, there will be a concentrated effort on multifamily assets as they adapt to fluctuating market conditions.

Richard Gorsky, another Managing Director of the Private Real Estate Debt department, stated that it is an opportune moment for investors looking at commercial real estate debt. The current market conditions, impacted by the repositioning of capital stacks and market value adjustments, together with solid fundamentals in residential sectors, reinforce the rationale behind this co-investment initiative.

The relationship between CenterSquare and Temasek began in early 2022 and has been progressively strengthening. Gorsky emphasized the collaborative spirit and shared vision of providing inventive solutions to borrowers, reflecting the partnership’s commitment to fostering mutually beneficial outcomes.

About CenterSquare

Founded in 1987, CenterSquare Investment Management is committed to managing real assets, particularly in listed and private equity real estate as well as private real estate debt. The firm operates as an independent and employee-owned entity, firmly prioritizing the alignment of interests with clients, partners, and employees. With a strong foothold in Philadelphia and offices in New York, Los Angeles, London, and Singapore, CenterSquare manages over $14 billion in assets as of December 2024, servicing a diverse range of institutional and private investors globally.

For further insights into their investment strategies and opportunities, visit CenterSquare's official website.