NorthStar/Townsend to Launch $1 Billion Interval Fund

Townsend Holdings, a private investment firm and registered investment adviser, is launching a $1 billion interval fund called NorthStar/Townsend Institutional Real Estate Fund Inc., according to a filing with the Securities and Exchange Commission.

NorthStar/Townsend Institutional Real Estate Fund intends to invests in commercial real estate investments, private equity real estate investment funds, and commercial real estate securities. The fund is designed to enable shareholders to invest indirectly in institutional quality real estate and real estate-related investments with institutional investors, including asset managers, public and private pension funds, endowments and sovereign wealth funds, without being subject to the high minimum investment requirements that most institutional asset managers typically impose on their investors.

Townsend Holdings is an affiliate of NorthStar Asset Management Group (NYSE: NSAM) and serves as the fund’s adviser. NorthStar Asset Management, a global asset management firm with approximately $40 billion in assets under management, acquired an 84 percent interest in Townsend in January 2016.

The fund is offering 40 million shares of common stock consisting class A, class C, and class I shares which will be sold through its distributor, NorthStar Securities LLC. The minimum initial investment is $2,500 for class A and class C shares and $25,000 for class I shares. The maximum sales load is 5.75 percent.

Class A shares will be priced at $26.44 each and include a sales load of $1.44 per share, or 5.44 percent. Class A shares will pay an annual shareholder servicing fee of 0.25 percent.

The fund is offering volume discounts to investors who purchase more than $50,000 worth of class A shares in the offering. The sales load payable by each investor depends upon the amount invested and may range from 0 to 5.75 percent.

Class C shares will be priced at $25.00 each and include an annual 0.75 percent distribution fee, as well as an annual 0.25 percent shareholder servicing fee. A contingent deferred sales charge of 1 percent will apply for class C shares that are held for less than 365 days from the initial date of purchase.

Class I shares will be priced at $25.00 each and do not include an upfront sales load, a distribution fee, or a shareholder servicing fee.

All or a portion of the distribution fee and shareholder servicing fee may be re-allowed to selected broker-dealers for class A and class C shares.

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