SA Start-Up Texton Property Fund Announces Its Partnership With Cadre Real Estate Management
SA Start-Up Texton Property Fund Announces Its Partnership With Cadre Real Estate Management. South African startup Texton Property Fund has announced its partnership with Cadre Real Estate Management. Texton has committed to give $5 million (R75.5 million) to Cadre for investments in real estate in the United States of America.
These investments will be targeted towards compelling assets with downside protection, specifically focusing on multifamily, industrial, select office, and select hospitality assets. Texton has strong conviction in US multifamily rental investments as the sector has benefited from solid job and wage growth, increased household formation, surging home values and lack of available inventory – all of which are forcing tenants to rent longer. Multifamily leases generally have annual lease terms with a diversified base of tenants which can be increased as leases roll over. As inflation has quickened and is expected to continue to increase, the ability to capture these rental increases provide a strong mitigate for inflation.
Cadre is a technology-enabled, real estate manager based in New York and invests across the US in multifamily, industrial, office and hospitality properties. Established in 2015, the management team has acquired over 40 deals across 22 markets in the US and has completed over $3.5 billion in transaction at a historical internal rate of return (IRR) of over 17% since its inception. Texton is pleased to invest alongside Cadre, who meet our stated investment objective is to deploy capital offshore by partnering with best-in-class asset managers who have a demonstrable track record.
The investments will be deployed across a diversified portfolio of institutional-grade assets with an overweight allocation towards multifamily assets that provide stable, income-generating returns with downside protection. In addition, industrial, office and hotel investments will be opportunistically pursued with the intention to generate alpha and upside.
