Cornerstone Real Estate Advisers Closes Core Mortgage Fund and Separate Account After Raising $1.75 Billion

Jun 02, 2010, 10:28 ET from Cornerstone Real Estate Advisers LLC

HARTFORD, Conn., June 2 /PRNewswire/ -- Cornerstone Real Estate Advisers LLC, one of the world's largest real estate investment managers, announced that it has closed the Cornerstone Core Mortgage Fund I LP, having raised $1.75 billion of investment capital for the fund and a separate account.  

The fund invests in low-leverage core mortgages secured by properties with quality ownership and sustainable cash flows.

"We think there is good opportunity to earn attractive, stable risk-adjusted returns on a current basis given market conditions," said Robert F. Little, Chief Investment Officer – Finance, and a senior member of Cornerstone's management team. "The mounting level of debt maturities, although masked by the 'pretend and extend' phenomenon, may well overwhelm commercial mortgage debt capacity in the coming months. It's a good time to have capital to invest in core mortgages."

The fund considers a range of property types, including industrial, office, retail, hotel and multifamily. It invests primarily in the United States, but has the ability to invest up to 10 percent of its assets in Canada. Investors in the fund include both U.S. domestic public funds and foreign sovereign investors.

Park Hill Real Estate Group LLC acted as placement agent for the fund.

Cornerstone has an extensive history originating and servicing real estate debt and a dedicated real estate debt platform. It has successfully invested and managed real estate debt through several macroeconomic, interest rate and real estate cycles.

Globally, Cornerstone provides a comprehensive offering of real estate debt, equity and securities expertise and services, managing or servicing approximately $30 billion in assets upon the finalization of its integration of Babson Capital Management's Real Estate Finance Group.

As a wholly-owned subsidiary of Babson Capital Management LLC, a member of the MassMutual Financial Group, Cornerstone enjoys financial strength and deep expertise, providing core and value-added investment and advisory services to institutional and other qualified investors.

For more information on Cornerstone, visit www.cornerstoneadvisers.com.

About Cornerstone Real Estate Advisers

Cornerstone Real Estate Advisers LLC, with offices in the US, UK, Europe and Asia, is one of the world's largest real estate investment advisers. It provides core and value-added investment and advisory services, including a comprehensive suite of real estate debt, equity and securities expertise and services, to institutional and other qualified investors around the globe. Cornerstone is a subsidiary of Babson Capital Management LLC, a member of the MassMutual Financial Group. To learn more, visit www.cornerstoneadvisers.com.

Contact: Patrick Collins

617-553-0349

pcollins@madisoncommunications.com



SOURCE Cornerstone Real Estate Advisers LLC



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