CenterSquare Investment Management has partnered with Temasek, the Singapore-based global investment company, to launch a $100 million commercial real estate debt co-investment vehicle. Once fully funded, the vehicle will have $200 million to invest in high-quality subordinate real estate loans, continuing the strategy of CenterSquare’s Debt Fund Series.
The initiative seeks to generate risk-adjusted, equity-like returns through mezzanine loans and debt-like preferred equity investments, primarily secured by viable, cash-flowing rental assets. Michael Boxer, Managing Director of CenterSquare’s Private Real Estate Debt vertical, highlighted the current higher-rate environment as an opportunity for disciplined investors to earn attractive returns. “We’re excited to expand our relationship with the highly respected Temasek investment team,” he stated.
The first tranche of capital will be invested alongside CenterSquare’s latest debt fund, focusing heavily on multifamily assets while maintaining flexibility to adapt to market changes. Richard Gorsky, another Managing Director at CenterSquare, noted the convergence of factors such as reconstituting borrower capital stacks and resetting valuations as underpinning this timely co-investment opportunity. “It is a pleasure working with like-minded, pragmatic capital partners,” Gorsky added.
Founded in 1987, CenterSquare manages over $14 billion in assets and has offices in major cities including New York, Los Angeles, London, and Singapore. This partnership with Temasek, which began in early 2022, marks a significant step in providing creative solutions for borrowers amidst changing market conditions.
