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ranklin Templeton and its specialist investment manager, Clarion Partners, are celebrating the five-year anniversary of the Clarion Partners Real Estate Income Fund Inc. (CPREX), a closed-end tender offer fund that provides individual investors with access to institutional-quality private real estate. CPREX invests in stable, well-leased properties in U.S. markets with favorable growth prospects, primarily focusing on industrial warehouse, rental housing, and healthcare-related properties.

    The five-year milestone signifies Clarion's commitment to pursuing strategic investment opportunities in commercial real estate despite the uncertain environment. The positive outlook for this asset class is driven by factors such as moderating inflation, slightly lower interest rates, and long-term trends related to demographics, innovation, and shifting globalization.

    "We're grateful for the trust and confidence our distribution partners, advisors, RIAs, and bankers have placed in CPREX," said Dave Donahoo, Franklin Templeton's Head of Wealth Management-Alternatives. "By not charging an incentive fee, we can deliver a larger percentage of gross returns to our investors."

    Thanks to its partners, Clarion Partners has continued to experience net inflows during a period of slow real estate fundraising for the sector as a whole. This has allowed them to acquire new properties during a wider cap rate environment, providing diversification benefits and setting CPREX up to continue delivering against its investment mandate.

    Clarion Partners, the sub-adviser to CPREX, has been a leader in building and managing private real estate portfolios for over 40 years. With more than $74 billion in real estate assets under management as of June 30, 2024, they have extensive experience in constructing portfolios that generate a balance of income and long-term capital appreciation.

    CPREX is designed to make investments in both real estate private equity and private debt, positioning it to be an active investor regardless of the market cycle. Growing interest in alternative investments has led to a nearly tripled number of U.S.-registered funds investing in private equity, private credit, and real estate since 2016.

    "A confluence of events has helped fuel the adoption of alternative investments," said Franklin Templeton's Donahoo. "Technology and product innovation are making alternatives more adoptable and accessible to wealth investors across the globe."

    About Clarion Partners

    Clarion Partners is an SEC-registered investment adviser with FCA-authorized and FINRA member affiliates, offering a broad range of real estate strategies across the risk/return spectrum to 500 institutional investors globally. With over $74 billion in total real estate and debt assets under management, they have extensive experience in managing private real estate portfolios.

    About Franklin Templeton

    Franklin Resources, Inc. is a global investment management organization with subsidiaries operating as Franklin Templeton and serving clients in over 150 countries. With more than 1,500 investment professionals and offices in major financial markets around the world, they offer specialization on a global scale, bringing extensive capabilities in fixed income, equity, alternatives, and multi-asset solutions.

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