Lone Star Funds has announced the final close of its latest commercial real estate fund, Lone Star Real Estate Fund VII, with total capital available of around $2.7 billion (£2.06 billion).
LSREF VII will target opportunistic and value-add commercial real estate investments including direct commercial real estate equity, debt portfolios, and commercial real estate-related operating companies in Europe, North America and Japan.
Donald Quintin, chief executive officer of Lone Star, said in a statement that an "ongoing complex and changing real estate landscape" meant the fund anticipates "deep-value and special situation investment opportunities across Europe, North America and Japan".
He added: “Lone Star has been investing in the broader commercial real estate sector for nearly 30 years, and we believe that the current environment is likely to play to our strengths as a disciplined and flexible opportunistic investor. We greatly appreciate the continued support of our longstanding partners who have supported us again during our most recent fundraise.”
Since the establishment of its first fund in 1995, Lone Star has assembled 25 private equity funds with aggregate capital commitments totalling approximately $95 billion.
The predecessor to LSREF VII, Lone Star Real Estate Fund VI, held its final closing in June 2019, with aggregate capital commitments of approximately $4.6 billion.
At the beginning of this year that fund saw Lone Star return to the UK retail sector for the first time in five years with the £111 million acquisition of the Union Square shopping mall in Aberdeen, Scotland from Hammerson. The sales price was 8% lower than the REIT's book value for the mall of £121 million as of year-end 2023.
In June 2024, Lone Star held the final closing for Lone Star Fund XII, the latest in the firm's Opportunity Fund series, with aggregate capital commitments of approximately $5.3 billion.
Lone Star organises its funds in three series: the Opportunity Fund series; the Commercial Real Estate Fund series; and the US Residential Mortgage Fund series. It invested on behalf of limited partners, which include institutional investors such as pension funds and sovereign wealth funds, as well as foundations and endowments that support medical research, higher education and other philanthropic causes.