CIM Group, of Los Angeles, has launched a new closed-end interval fund, the CIM Real Assets & Credit Fund. CIM RACR reportedly aims to invest in a mix of institutional-quality real assets and credit instruments. Its investment objective is to generate current income through cash distributions and preserve shareholders’ capital across various market cycles, with a secondary objective of capital appreciation, according to CIM Group. CIM Capital IC Management LLC is the investment adviser to CIM RACR.
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Real assets may consist of direct real estate and infrastructure held through one or more wholly owned REIT subsidiaries, as well as publicly traded REITs, non-affiliated private REITs and real estate debt. Credit-related investments might include investments in floating- and fixed-rate loans, broadly syndicated senior secured corporate loans, investments in the debt and equity tranches of collateralized loan obligation vehicles, and opportunistic credit investments.
In a prepared statement, David Thompson, the fund’s CEO, said the fund intends to build “a balanced portfolio of real assets and corporate credit assets, allowing investors the opportunity to leverage the potential benefits of both asset classes with a goal of providing income and capital preservation, without the double fees associated with typical real estate-focused interval funds.”
A CIM affiliate will invest a total of $20 million in the fund over time as it receives subscriptions from investors. CIM RACR is available in four share classes: C Shares (RACRX), A Shares (ARACX), I Shares (IRACX) and L Shares (LRACX).
OFS Capital Management LLC will be the fund’s investment sub-advisor for its corporate credit assets. ALPS Distributors Inc. is CIM RACR’s distributor. A CIM spokesperson did not reply to Commercial Property Executive’s request for additional information.
CIM Group’s recent acquisitions and current developments are varied. In February, CCIT II, a non-listed REIT managed by CIM Group, acquired an office building in Hunt Valley, Md., from its original developer, Greenfield Partners. The purchase price of $39.1 million won CIM a five-story, 134,455-square-foot Class A property occupied by a single tenant.
In March, the company broke ground on what is intended to eventually be a 2.7GW solar project. Westlands Solar Park will cover more than 20,000 acres in California’s Fresno and Kings counties. And just days ago, CIM Group agreed to buy a large Los Angeles mall, the 869,000-square-foot, 40-acre Baldwin Hills Crenshaw Plaza. The company reportedly might take advantage of the pre-pandemic vacancies of two former anchor spaces (Sears and Walmart) to redevelop that part of the mall as office space.