Corporate overview

CBRE Investment Management is a leading global real assets investment management firm with $155.3 billion in assets under management* as of June 30, 2025, operating in 20 countries around the world. Through its investor-operator culture, the firm seeks to deliver sustainable investment solutions across real assets categories, geographies, risk profiles and execution formats so that its clients, people and communities thrive.

*Assets under management (AUM) refers to the fair market value of real assets-related investments with respect to which CBRE Investment Management provides, on a global basis, oversight, investment management services and other advice and which generally consist of investments in real assets; equity in funds and joint ventures; securities portfolios; operating companies and real assets-related loans. This AUM is intended principally to reflect the extent of CBRE Investment Management’s presence in the global real assets market, and its calculation of AUM may differ from the calculations of other asset managers and from its calculation of regulatory assets under management for purposes of certain regulatory filings.

Investment principles & strategy

CBRE Investment Management’s (the “Firm’s”) investment philosophy is to deliver superior performance by applying the Firm’s knowledge advantage through a disciplined investment process. The Firm’s investment philosophy is founded on the following principles:

Risk must be understood before it can be managed

A rigorous risk framework for each mandate is formulated and then portfolios that will meet the Firm’s clients’ risk/return requirements are carefully constructed.

Market conditions change

  • By combining a global view of capital markets with an in-depth insight into local asset fundamentals, the firm invests in the markets and strategies that offer the best relative value at different stages of the cycle.

Every asset is unique

  • The Firm utilizes its local information networks to understand the drivers and risks of the future cash flow of an asset, enabling the ability to see opportunities where others do not, and to be a disciplined seller.

Asset management creates value

  • A deeper understanding of occupier requirements enables the Firm to maximize each asset’s potential through innovative and sustainable management.

Consistency counts over the long run

  • A superior investment track record is built through consistent outperformance across cycles.

The Firm offers a range of strategies across the risk-return spectrum.

Sector forecasts

INDUSTRIAL: The logistics sector remains a core component of the European real estate outlook, though its rental growth trajectory is moderating compared to recent years. After several years of outperformance, logistics rental growth is expected to align more closely with the all-property average over the next five years, at approximately 2.5% per annum. Demand continues to favor newly built or refurbished stock, which captures the majority of positive net absorption, while older assets experience a net loss in demand. This bifurcation reflects occupiers’ increasing preference for modern facilities that meet operational efficiency and sustainability requirements. Supply remains constrained, as the last wave of projects initiated during the low-interest-rate era nears completion, with limited new development in the pipeline. Yield compression is expected to be modest, around 20 basis points over the forecast period, reinforcing the importance of income growth as the primary driver of returns.

OFFICE: The office sector is characterized by a pronounced bifurcation between modern, sustainable assets and legacy stock. Prime offices in core markets such as Paris and London are expected to benefit from rental growth and reversionary potential, supported by occupier demand for high-quality, ESG-compliant space. Conversely, secondary offices face significant challenges, including high repositioning costs and limited liquidity, which are likely to expose pricing vulnerabilities as transaction activity improves. Yield forecasts indicate stability for modern offices, while legacy office yields are expected to drift higher, reflecting structural obsolescence risk. Investors are advised to focus on best-in-class assets in prime locations, as operational performance and alignment with occupier requirements become the key drivers of returns.

RESIDENTIAL: Residential real estate, including multifamily and student housing, continues to offer the strongest rental growth outlook among mainstream sectors in Europe. Over the next five years, prime residential rents are forecast to grow at an average of 2.5% per annum, outpacing inflation assumptions of 2%. Structural drivers such as urbanization, affordability constraints in homeownership, and demographic trends underpin this resilience. Liquidity in the sector remains robust, and investor appetite is supported by the defensive characteristics of residential assets. While leverage adds less to returns compared to logistics or retail, the sector benefits from stable income streams and low volatility. Asset selection remains critical, with emphasis on properties that align with occupier expectations for flexibility, sustainability, and quality of living.

RETAIL: Retail is re-emerging as an attractive sector, particularly in southern Europe and Central and Eastern Europe (CEE), where malls and necessity-driven retail formats are showing renewed potential. Retail moved to an overweight position for the first time in a decade, supported by improving consumer sentiment and resilient spending patterns. While approximately one-quarter of regional shopping centers recorded no rental growth in the past year, the top quartile achieved nearly 7% growth, highlighting the importance of asset quality and location. Yield compression prospects are strongest for malls, reflecting their recovery potential, while retail warehouses and convenience-led formats also present compelling opportunities. Investors should prioritize assets with strong tenant covenants, high reversionary potential, and relevance to local demographics.

Strategic corporate development

CBRE Investment Management seeks to be a leader in global real assets investment management by consistently delivering outstanding performance and exceptional client solutions. The Firm continues to bolster its existing global platform and grow purposefully over time.

In particular, the Firm is focused on growing the following programs over the next three to five years in alignment with investor appetite and objectives:

  • Open-end, diversified core real estate funds in the U.S. and Europe
  • Open-end, diversified global core-plus funds in real estate and infrastructure
  • Open-end, sector-specific core-plus funds in logistics and residential in the U.S. and Europe
  • Closed-end, enhanced return real estate fund series in the U.S., Europe, and APAC, plus a global opportunistic secondaries fund series
  • Listed real assets strategies across real estate and infrastructure
  • A select number of premier separate accounts across asset classes, regions, and/or execution formats.

CBRE Investment Management does not place absolute limits on growth in any of the above areas, with the exception of selective hard ceilings on closed-end funds based on overall capacity of the investment opportunity. In general, the Firm would limit growth if the expected high level of performance or service could not be provided or when growth would jeopardize the performance of existing investments.

We do not foresee any potential conflict of interest that could arise from managing this particular account.

COMPLIANCE STATEMENT

Senior management of CBRE Investment Management is responsible for ensuring compliance with a code of ethics, regulatory requirements, and fiduciary obligations.

CBRE Investment Management is an investment adviser registered with the Securities and Exchange Commission under the Investment Advisers Act of 1940. It also is authorized and regulated in certain European and Asian countries to undertake certain regulated activities in conjunction with its investment advisory and fund management services.

The firm has designated compliance officers across the regions and has adopted, implemented, and provided for reviews of adequacy and effectiveness of its written policies and procedures.

All employees are required to comply with the Investment Management Policies and Procedures, which include legal and compliance policies.

This information is for informational purposes only. Past performance is not indicative of future results, and the value of investments can go down as well as up. Investing involves risk, including the loss of your entire investment.