JPMorgan to open world’s largest RE fund

JPM alternatives and real estate

According to PERE, JPMorgan Asset Management will be welcoming foreign investors for the first time in its flagship real estate fund, the JP Morgan Strategic Property Fund (SPF).

SPF currently has a net asset value of approximately $33b and gross asset value of approximately $43b.

The fund is the largest commingled real estate fund, beating rivals in the NCREIF Fund Index – Open-end Diversified Core Equity Index.

For example, PGIM Real estate’s PRISA I had a NAV of $19.7b and GAV of $24.5b as of Dec 31, according to an April presentation to the Bay County Employee’s Retirement System.

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The firm will being accepting commitments from overseas institutions by mid-2019. The actual inclusion may take longer as SPF is understood to have a queue of three to four quarters.

Foreign investors may not actually become limited partners until 2020.

According to sources, the bank platform has had to start updating hundreds of existing investors of the change from three to six months ago.

The New York based asset manager launched the SPF in 1998, originally structured as an open-ended core vehicle for US investors.