CPREIF: A 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 a portfolio of commercial properties and Clarion’s real estate expertise.

Clarion Partners

With over $56 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, 2020.


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. As of April 2019.
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 equities.

Private real estate investing: Potential benefits

Private real estate accounts for 90% of the U.S. commercial real estate market².


²Source: Securities Industry and Financial Markets Association, Urban Land Institute, NAREIT, NCREIF and Clarion Partners Investment Research. Annual data and estimates are as of 4Q 2018. U.S. commercial real estate includes private and public equity investments. Estimates are based on a comparison to U.S. debt and U.S. equity. U.S. debt includes corporate securities, asset-backed securities, Treasury debt, Federal agency debt including mortgage-backed securities, money market funds, and municipal 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.

³Distributions may consist of a return of capital.

 

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 exposure to a real estate portfolio

Daily valuation⁴

 

No incentive fee

 

No dual fee layers⁵

Limited leverage⁶

 

1940-Act registered fund⁷

 



Source: Clarion Partners. For illustrative purposes only. Not an exhaustive list.
⁴A majority of non-traded REITs disseminate a monthly NAV.
⁵No additional underlying manager fee.
⁶The 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.
⁷Registered under the Investment Company Act of 1940

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

Target allocation⁸

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


⁸On 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. 

Fund distributions may consist of a return of capital.

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.

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.

CPREIF makes its second investment.

The Fund has closed on its second investment, a $20.2 million industrial property in West Deptford, southern New Jersey. This recently renovated functional and fully occupied warehouse is strategically located in an industrial sub-market with low vacancy rates that benefits from highway connectivity and demand from logistics users.

Download the Property Booklet >>

Daily valuation

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Product Literature


Thought Leadership

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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.

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.

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.