For Sale: One Fund Manager With A Mix Of Assets
Fund manager InfraRed Capital Partners is getting out of the European real estate business.
Its $2B real estate business is split between Europe and Asia. The Asian assets will be subsumed into BentallGreenOak, the real estate fund manager in which Sun Life also owns a majority stake. Corporate finance firm Fenchurch Advisory Partners has been drafted in to undertake a strategic review of the European business, which is expected to lead to a sale, PERE said.
InfraRed has a good track record of raising capital. In 2018 it raised £522M for its fourth value-add fund, ahead of its target of £500M.
It has been a big buyer of urban logistics for that fund and also for its Urban Logistics Income Fund. In the first three months of 2021 it bought a 261K SF portfolio for £51M for the Urban Logistics Fund from NW1 Partners and sold a 2.2M SF UK and French portfolio from the value-add fund for £250M to Blackstone.
Previously it was a big investor in the retail sector, and these investments have not been so straightforward.
At the Eastgate shopping centre in Basildon, which it bought for £89M in 2011, it is undertaking a huge redevelopment, with outline plans lodged for a 2,800-unit scheme encompassing private sale flats, build to rent, student accommodation, later living and co-living alongside revamped retail and commercial space.