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Real estate fund raises $2.1 billion

May 15, 2008|Roger Vincent | Times Staff Writer

Los Angeles real estate firm CB Richard Ellis Investors said Wednesday that it had closed a $2.1-billion investment fund it will use to buy properties across the country.

The money raised from institutional investors in the U.S., Europe and the Middle East can be leveraged to buy about $6.4 billion worth of commercial real estate, the company said.

Through the fund, CB Richard Ellis Investors will buy office, apartment, industrial and retail properties in two categories, the company said.

One category will purchase properties that need minor repairs and upgrades in order to attract more tenants and raise rents.

The other, riskier category will acquire distressed buildings with high vacancy levels that need a lot of improvements. The so-called opportunity category will also fund real estate development, acquire and reposition property portfolios and invest in operating companies that control high-quality real estate.

The fund has so far committed to buying about $350 million worth of industrial properties in the Inland Empire, spokeswoman Pam Barnett said. She declined to identify the properties because the transactions weren't complete.

CB Richard Ellis Investors is an independently operated affiliate of Los Angeles-based CB Richard Ellis Group Inc., the world's largest real estate brokerage.

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roger.vincent@latimes.com

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