CPREIF: A Direct Connection to Private Real Estate

In a world where many assets move in sync, private real estate is less correlated to traditional asset classes and provides diversification and income potential. CPREIF offers direct, easy access to commercial properties and Clarion’s real estate expertise.

Clarion Partners

With over $50 billion in assets under management¹ and more than 1,200 properties, Clarion Partners is one of the largest pure-play real estate managers.

¹As of March 31, 2019.


Is Clarion Partners in your neighborhood?

Clarion Partners has developed a significant presence across the United States, with investments across most property types including warehouse, office and multifamily.
 

Explore the property markets in which the firm is most active.

Map

Source: Clarion Partners.
For illustrative purposes. Not an exhaustive list. The provided information is for properties owned and/or managed by Clarion Partners and is not specifically representative of Clarion Partners Real Estate Income Fund.
 

Clarion Partners Facts
and Real Estate Insights

“The real estate investment landscape is becoming increasingly dynamic based on changes in the way people live, work and play. Clarion Partners is well positioned to invest smartly.” 

- David Gilbert, Chief Executive Officer and Chief Investment Officer, Clarion Partners

U.S. commercial real estate is a $10.7 trillion market with significant investment potential. It's the third-largest asset class after fixed income and equities².


² Source: Securities Industry and Financial Markets Association, Urban Land Institute, NAREIT, NCREIF and Clarion Partners Investment Research, annual data, and estates as of 4Q 2018. U.S. commercial real estate includes private and public equity investment. Estimates are based on a comparison to U.S. debt and U.S. equity. U.S. debt includes corporate securities, ABS, Treasury debt, Federal agency debt including MBS, money market funds, and muni bonds. U.S. equity is the total market value of publicly traded domestic companies.

Diversification does not assure a profit or protect against market loss. All investments involve risk, including loss of principal, and there is no guarantee that investment objectives will be met. Past performance is no guarantee of future results.
 

Are you positioned to invest in commercial real estate?

CPREIF - Clarion Partners Real Estate Income Fund

CPREIF provides investors the ability to gain direct exposure to a diversified portfolio of income-producing commercial real estate and real estate-related securities.



Easy-to-use, innovative solution

Features
CPREIF
Non-Traded REIT

Direct real estate exposure

Daily valuation³

 

No incentive fee

 

No dual fee layers⁴

Limited leverage⁵

 


Source: Clarion Partners. For illustrative purposes only. Not an exhaustive list.
³A majority of non-traded REITs disseminate a monthly NAV.
⁴No additional underlying manager fee.
⁵The 1940 Act limits fund leverage to 33 1/3% of total assets. However, the Fund may enter into investment management techniques that have similar effects as leverage, but which are not subject to the 33 1/3% limitation. Please see the prospectus for more information.

CPREIF seeks to provide current income and long-term capital appreciation.

Target allocation⁶

The Fund seeks to aggregate a diversified portfolio of private commercial real estate assets and real estate securities.


⁶On 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. 

Liquidity considerations
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.

Key terms and definitions

Correlations:
Correlation is a statistical measure of the relationship between two sets of data. When asset prices move together, they are described as positively correlated; when they move opposite to each other, the correlation is described as negative or inverse. If price movements have no relationship to each other, they are described as uncorrelated. Correlation refers to a relationship existing between mathematical or statistical variables which tend to vary, be associated, or occur together in a way not expected based on chance alone.

Standard deviation: Standard deviation is a statistic used as a measure of the dispersion or variation in a distribution,  or data set, from its mean, or average; it measures the volatility of an investment’s return over a particular time period;  the greater the number, the greater the volatility.

Investment risks
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.

The provided property map information is for properties owned and/or managed by Clarion Partners and is not specifically representative of Clarion Partners Real Estate Income Fund. For illustrative purposes. Not an exhaustive list.

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.

© 2019 Legg Mason Investor Services, LLC, member FINRA, SIPC. Clarion Partners, LLC, Western Asset Management Company, LLC and Legg Mason Investor Services are subsidiaries of Legg Mason, Inc.