Falcon fund refocuses strategy on US

The New York-based real estate firm, which was originally targeting investments primarily in Latin America, is now targeting the US. The firm is also raising an agribusiness vehicle targeting agricultural land in Argentina, Brazil, Colombia and Uruguay.

Falcon Real Estate has changed the strategy for its latest opportunity fund away from investing primarily in Latin America and targeting more US assets.

Last year, the New York-based investment firm launched a family of four funds, called Falcon Americas Real Estate Opportunity funds, individually targeting Brazil, Colombia, Argentina and the US.

Following the credit crisis last September though, Falcon decided to postpone plans for the Latin America-specific funds to focus solely on the US vehicle. The firm told PERE it hoped to come back to the other Latin America funds once there was a “compelling reason to return”.

Falcon will now concentrate on raising a $250 million US Opportunity Fund, that will target office and some logistics and retail in the 12 largest markets in the country. The fund is expected to hold a first close by June, with IRRs of between 12 percent and 15 percent.

Falcon Real Estate was founded in 1991 by Howard Hallengren and Miller, both former executives with Chase Manhattan Bank.

Hallengren said in a statement: “In view of the collapse of the mortgage market and the serious economic recession in the US, we have begun to see some excellent investment opportunities for investors who have strong cash positions or have back-up financing.”

Falcon is also raising the Falcon KP Agribusiness Fund in a joint venture with Buenos Aires-based investment firm Knightsbridge Partners. The fund will invest primarily in agricultural land in Argentina, Brazil, Columbia and Uruguay.