JPMorgan Chase has halted its efforts in creating a $750 million real estate fund, named Junius Real Estate Partners, due to a lack of interest in the high-risk and high-return deals it had planned, the Wall Street Journal reported.
An unnamed source told the Journal that, despite the setback, Junius will restart fundraising efforts sometime in the future. According to the paper, Junius had recently made its first investment: the Salamander Resort & Spa, located in Middleburg, Va. It’s set to open next year, featuring 168 rooms and suites, plus an equestrian farm.
This decision marks the latest example of a “brand-name” firm having problems meeting real estate fund-raising goals, the Journal wrote, especially with funds that focus on risky investments. For example, Apollo Global Management has had trouble reaching its $650 million goal for a new property fund, the Journal said.
Junius is JPMorgan’s first foray into opportunistic funds, according to the Journal. [WSJ]