CenterSquare Announces Value-Added Fund III, L.P. for Institutional Investors

BNY Mellon Investment Management Boutique Seeking $500 Million in Limited Partner Commitments for Third Value-Add Real Estate Fund

PR Newswire

NEW YORK, April 1, 2014 /PRNewswire/ -- CenterSquare Investment Management, Inc., the suburban Philadelphia, PA-based real estate specialist for BNY Mellon, has launched CenterSquare Value-Added Fund III, L.P.  The fund will invest in middle-market, transitional real estate assets in the U.S., focusing on the office, multifamily, retail, industrial, parking and hospitality sectors.

The fund, which is limited to qualified purchasers, is expected to raise $500 million, with the first closing date anticipated in the second quarter of 2014 and the final closing date anticipated in the second quarter of 2015.  CenterSquare said the fund plans to acquire properties with total capitalizations ranging from $25 million to $75 million.

The fund will implement a value-added strategy, focusing on acquiring and improving assets that require physical upgrades or revisions in their capital structures.  "We believe that a middle market, value-add real estate strategy represents the most attractive space in the market for creating value and reducing risk," said P.J. Yeatman, head of private real estate for CenterSquare.  "Fund III will be an acquirer of transition and a seller of stability."

CenterSquare said that it will leverage the capabilities of its national network of local real estate operating partners to source, underwrite, and execute attractive value-add investment opportunities. CenterSquare also said that the fund is being designed to employ a total return strategy that may include a significant current yield component.

Notes to Editors:

CenterSquare was founded in 1987 under the name "Urdang" with an exclusive focus on institutional investment grade real estate. CenterSquare offers a variety of strategies and products, managing approximately $6.0 billion in public real estate securities through CenterSquare Investment Management, Inc. and approximately $1.8 billion (gross) in debt and private equity real estate investments through CenterSquare Investment Management Holdings, Inc. (together referred to as "CenterSquare"), as of December 31, 2013.  It manages investments for institutional investors and high net worth individuals throughout global markets and across public and private capital sectors.  It is one of the investment boutiques of BNY Mellon Investment Management.

Securities are offered in the U.S. through MBSC Securities Corporation, a registered broker dealer and a member of FINRA. MBSC Securities Corporation and CenterSquare are both wholly-owned subsidiaries of BNY Mellon.

BNY Mellon Investment Management is one of the world's leading investment management organizations and one of the top U.S. wealth managers, with $1.6 trillion in assets under management, as of December 31, 2013. It encompasses BNY Mellon's affiliated investment management firms, wealth management services and global distribution companies. More information can be found at www.bnymellon.com.

BNY Mellon is a global investments company dedicated to helping its clients manage and service their financial assets throughout the investment lifecycle. Whether providing financial services for institutions, corporations or individual investors, BNY Mellon delivers informed investment management and investment services in 35 countries and more than 100 markets. As of December 31, 2013, BNY Mellon had $27.6 trillion in assets under custody and/or administration, and $1.6 trillion in assets under management. BNY Mellon can act as a single point of contact for clients looking to create, trade, hold, manage, service, distribute or restructure investments. BNY Mellon is the corporate brand of The Bank of New York Mellon Corporation (BK). Additional information is available on www.bnymellon.com, or follow us on Twitter @BNYMellon.

All information source BNY Mellon as of December 31, 2013. This press release is qualified for issuance in the US only and is for information purposes only. This press release is issued by BNY Mellon Investment Management to members of the financial press and media and the information contained herein should not be construed as investment advice.  A BNY Mellon Company.        

The Fund is not registered under the Investment Company Act of 1940, as amended, in reliance on an exception thereunder.  The Fund does not intend to register the interests under the Securities Act of 1933, as amended, or the securities laws of any state and intends to be offered and sold in reliance on exemptions from the registration requirements of the '33 Act and state laws.  Unregistered funds are generally not subject to the same regulatory oversight and/or regulatory requirements as mutual funds.  Unregistered funds may not be required to provide periodic pricing or valuation information to investors.  Investments may involve complex tax structures and delays in distributing important tax information.  Fund interests are subject to restrictions on transferability and resale, and there will be no public market for the Fund interests.

An investment in the Fund is speculative and involves a high degree of risk, and there can be no assurance that a fund's investment objectives will be realized.  Investment value will fluctuate, and an investor could lose all or a substantial portion of his or her investment.  An investment in the Fund may be highly illiquid.  The Fund may leverage its investments which may substantially increase the risk of loss.  Because the Fund concentrates its assets in the real estate industry, an investment is closely linked to the performance of the real estate markets.  Investing in real estate entails particular risks and uncertainties which include: significant fluctuations and cycles in value; the fair value of the Fund's investments may be not readily determinable; the activity of identifying, completing and realizing attractive real estate investments is highly competitive and involves a high degree of uncertainty; and the significant effect changing interest rates can have on valuation and overall costs to the Fund.  These and other risks are described in more detail in the Fund's Confidential Private Placement Memorandum.  Past performance is not a guide to or indicative of future results.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy which may be made only at the time a prospective investor receives a Confidential Private Placement Memorandum describing the offering and related subscription agreement. Prospective investors should read the Fund's Confidential Private Placement Memorandum and consider the Fund's objectives, risks, charges and expenses carefully before investing. Fund interests will only be sold to qualified purchasers.

Media Contact:

Mike Dunn


+1 212 922 7859


mike.g.dunn@bnymellon.com



Fund Contact:

Scott Maguire


+1 610 818 4612


smaguire@centersquare.com

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