Investments in Unconsolidated Real Estate Funds

3 Months Ended

Mar. 31, 2019

Investments In Unconsolidated Real Estate Funds Text Block

4.	Investments in Unconsolidated Real Estate Funds

We are the general partner and investment manager of Paramount Group Real Estate Fund VII, LP (“Fund VII”) and its parallel fund, Paramount Group Real Estate Fund VII-H, LP (“Fund VII-H”), our Property Funds. On January 25, 2019, Fund VII and Fund VII-H sold their only remaining asset, 0 Bond Street, a 64,532 square foot creative office building in the NoHo submarket of Manhattan, for $130,500,000.

We also manage Paramount Group Real Estate Fund VIII, LP (“Fund VIII”) and Paramount Group Real Estate Fund X, LP (“Fund X”), our Alternative Investment Funds, which invest in mortgage and mezzanine loans and preferred equity investments. As of March 31, 2019, Fund VIII has invested $617,250,000 of capital and has $157,950,000 in remaining capital commitments, and Fund X, which completed its initial closing in December 2018, has $167,000,000 of capital commitments.

The following tables summarize our share of investments in these unconsolidated real estate funds as of the dates thereof and our share of the income or loss recognized for the periods set forth below.

	As of
(Amounts in thousands)	March 31, 2019		December 31, 2018
Our Share of Investments:
Property Funds	$	147	$	2,340
Alternative Investment Funds		8,016		8,012
Investments in unconsolidated real estate funds	$	8,163	$	10,352

(Amounts in thousands)	For the Three Months Ended March 31,
Our Share of Net Income (Loss):	2019			2018
Net investment income	$	133		$	66
Net realized loss		(54	)		-
Net unrealized loss		(33	)		(132	)
Income (loss) from unconsolidated real estate funds	$	46		$	(66	)

The following tables provide the combined summarized financial information of our unconsolidated real estate funds with respect to capital that has been called and/or invested, as of the dates and for the periods set forth below but does not include uncalled capital that has been committed.

	As of
(Amounts in thousands)	March 31, 2019		December 31, 2018
Balance Sheets:
Real estate investments	$	631,566	$	645,013
Cash and cash equivalents		1,322		10,791
Other assets		1,933		10
Total assets	$	634,821	$	655,814

Other liabilities	$	11,282	$	1,483
Total liabilities		11,282		1,483
Equity		623,539		654,331
Total liabilities and equity	$	634,821	$	655,814

	For the Three Months Ended March 31,
(Amounts in thousands)	2019			2018
Income Statements:
Investment income	$	12,603		$	6,270
Investment expenses		2,139			997
Net investment income		10,464			5,273
Net unrealized losses		(2,565	)		(1,271	)
Reversal of previously recorded unrealized losses		24,285			-
Net realized losses		(25,040	)		-
Income from real estate fund investments	$	7,144		$	4,002