Liquid Realty principal and CEO Scott Landress tells GlobeSt.com he is restricted by confidentiality agreement from naming either the seller or the funds in which it acquired interests. Landress would say that the funds in which it acquired interests invest in lodging, senior housing, shopping centers, office space and mezzanine loans and are sponsored by a "leading US fund manager." The funds are scheduled to be liquidated over the next three years, he says.
The interests in the funds were acquired by Liquid Realty's second and fourth funds, with the second fund acquiring one-third of the interest and the fourth fund acquiring the remainder. The investment largely exhausts the equity in the second fund. The fourth fund, which has not yet held its final closing, is less than 50% invested, he says. Liquid Realty's third fund is fully invested in 10 Jersey Property Trusts. A major investor in that fund is the Canada Pension Plan.
Liquid Realty has acquired $1 billion in secondary interests globally since launching operations in 2002. Its investors include state and corporate pension funds, endowments, foundations and high-net-worth individuals. In 2006, it acquired interests in 10 Jersey Property Trusts valued at $775 million (435 million pounds) it was has been called the largest secondary real estate acquisition in history. While Landress declined to discuss the IRR investors in its funds expect, industry sources tell GlobeSt.com that the standard IRR range for opportunity funds range from 15% to 25% or more.
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