Velocis Fund Announces First Fund Closing

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Real estate investment fund meeting strategic goals

DALLAS--(BUSINESS WIRE)-- Velocis Fund, L.P. announced that it has met its first fund closing target. The real estate private equity fund accepted $36.5 million in capital commitments and an additional $4.7 million of co-investment equity for a total of $41.2 million of equity under management. Incorporating maximum leverage of 60 percent, this first closing will give Velocis Fund approximately $100 million in purchasing power.

“This closing has taken our fund from concept to reality,” said Fred Hamm, Velocis managing principal. “We are carrying out our original stated strategy and are continuing to pursue real estate assets that meet our investment criteria. While excited about this first closing, we continue our steady, disciplined approach to raising capital and are looking forward to celebrating a second closing in early 2012. Looking ahead to 2012, we are enthusiastic that our investment capital is increasing and our acquisition pipeline is growing. We are confident that 2012 will present some attractive buying opportunities.”

Velocis is seeking to raise a total of $150 million in equity from sophisticated, high-net worth investors in the United States, Mexico and Europe. With moderate leverage, this will provide buying power in excess of $350 million. The Fund anticipates a second closing in the first quarter of 2012.

Velocis announced its first acquisition in March 2011 when it purchased the Jefferson Building, a 97,552-square-foot medical office building located in Austin, Texas. With several leases completed in the last six months, occupancy in the Jefferson has increased to over 87%. Rental rates throughout the property are meeting or exceeding expectations, and the current yield to the Fund from the Jefferson investment is above pro forma.

The Fund targets U.S. real estate assets in demand driven/supply constrained markets in the $10 million to $55 million range, focusing on core-plus office, medical office and retail real estate investments. The Fund is specifically sized to acquire a diversified portfolio of assets that may be too large for an individual investor, but too small for many large institutional investors.

Originally introduced to investors as Valeo Fund in early 2010, Velocis Fund is led by an experienced team of professionals with expertise in all aspects of commercial real estate, as well as in managing the assets of high-net worth individuals. In addition to managing principal, Fred Hamm, are principals: Mike Lewis, formerly a top officer at Crescent Real Estate Equities; Steve Lipscomb, former National Director of Archon Retail; and Jim Yoder, previously a Managing Director of Jones Lang LaSalle.

In addition to Velocis Fund, Velocis Partners offers investors and real estate clients a real estate services and advisory division. The real estate services division, Velocis Real Estate, led by Nick Koeijmans, provides tenant representation, leasing, property management and acquisition/disposition services. Velocis Advisors offers professional real estate advice and consulting services for commercial real estate investors. Velocis Advisors works with clients to identify current real estate needs and provide innovative solutions to meet their investment goals. For more information, visit www.velocispartners.com