Strategy and Investments
CPREIF seeks to provide current income and long-term capital appreciation.
The Fund offers attractive distributions2 and seeks to aggregate a diversified portfolio of private commercial real estate assets and real estate securities.
1 On a long-term basis, under normal market conditions, Clarion Partners expects to allocate 60%-90% of the portfolio to private commercial real estate and 10%-40% to real estate securities and cash/cash equivalents and other short-term investments. Western Asset Management Company, LLC is a sub-adviser to Clarion, retained to manage the Fund’s publicly traded real estate securities investments and cash equivalents.
2 As of May 31, 2021. Distribution rate for class I, D, S and T is 5.12%, 5.03%, 4.31% and 4.37%, respectively.
Fund distributions may consist of a return of capital.
The Fund should be viewed as a long-term investment, as it is inherently illiquid and suitable only for investors who can bear the risks associated with the limited liquidity of the Fund. Limited liquidity is provided to shareholders only through the Fund’s quarterly repurchase offers for no more than 5% of the Fund’s shares outstanding at net asset value. There is no guarantee these repurchases will occur as scheduled, or at all. Shares will not be listed on a public exchange, and no secondary market is expected to develop.
The Fund manager does not expect to be able to achieve its target allocations until the Fund has raised substantial proceeds in this offering and acquired a broad portfolio of investments. Prior to that time (the “ramp-up period”) the Fund manager will balance the goal of achieving the Fund’s portfolio allocation targets with the goal of carefully evaluating and selecting investment opportunities to maximize risk-adjusted returns. Following the end of the ramp-up period, the manager believes that the size of our portfolio of investments should be sufficient for the Fund to adhere more closely to its allocation targets, although we cannot predict how long the ramp-up period will last and cannot provide assurances that we will be able to raise sufficient proceeds in this offering to accomplish this objective.
Target Property Characteristics
Stabilized, well-leased, cash flow-producing properties
Markets and properties with favorable growth prospects
Exposure to different geographic regions and property sectors*
*Property sectors may include but are not limited to, warehouse, multifamily, office, retail, hospitality, student housing, medical and health care facilities, and self-storage.
Your CPREIF Team
Collaborative, research-driven and disciplined in their investment approach.
Richard joined Clarion Partners in 2000, and he has worked in the real estate industry since 1995. He is a Member of Clarion’s Investment Committee. Richard received his MBA in Finance and Public Economics from Yale University and Bachelor of Architecture from the University of Notre Dame.
Onay joined Clarion Partners in 2003; she began working in the real estate and finance industries in 1997. She is a member of Clarion’s Investment and Career Management committees. Onay received her MBA in General Management from Harvard Business School and AB in History and Literature/Latin America from Harvard College.
Asst. Portfolio Manager
Janis joined Clarion Partners in 2006 and began working in the finance industry in 2000. She has experience in formulating investment strategies, overseeing their execution through acquisitions, dispositions and financings. Janis received her Bachelor of Business Administration from Emory University.
The Fund is newly organized, with a limited history of operations. An investment in the Fund involves a considerable amount of risk. The Fund is designed primarily for long-term investors, and an investment in the Fund should be considered illiquid. Shareholders may not be able to sell their shares in the Fund at all or at a favorable price. Fixed income securities involve interest rate, credit, inflation and reinvestment risks. As interest rates rise, the values of fixed income securities fall. High-yield bonds possess greater price volatility, illiquidity and possibility of default. The Fund’s investments are highly concentrated in real estate investments, and therefore will be subject to the risks typically associated with real estate, including but not limited to local, state, national or international economic conditions; including market disruptions caused by regional concerns, political upheaval, sovereign debt crises and other factors. Asset-backed, mortgage-backed or mortgage-related securities are subject to prepayment and extension risks. The Fund employs leverage, which increases the volatility of investment returns and subjects the Fund to magnified losses if an underlying fund’s investments decline in value. The Fund may use derivatives, such as options and futures, which can be illiquid, may disproportionately increase losses, and have a potentially large impact on Fund performance.
BEFORE INVESTING, CAREFULLY CONSIDER A FUND’S INVESTMENT OBJECTIVES, RISKS, CHARGES AND EXPENSES. YOU CAN FIND THIS AND OTHER INFORMATION IN EACH PROSPECTUS, AND SUMMARY PROSPECTUS, IF AVAILABLE, AT WWW.LEGGMASONFUNDS.COM. PLEASE READ THE PROSPECTUS CAREFULLY.