Investor Raises £200M For UK Opportunities Thrown Up By Brexit

Investment manager Castleforge Partners has held a first close for a new fund that will look to take advantage of dislocation in UK property, including opportunities thrown up by Brexit.

Castleforge has raised £200M in a first close for its third value-add real estate fund, according to PERE. Castleforge Partners III has a total fundraising target of £375M.

With previous funds Castleforge has had to steer clear of London because of high prices, and has invested in regional cities like Bristol instead. But the uncertainty caused by the impact of the UK leaving the EU without a Brexit deal has thrown up opportunities for the investor in the capital, PERE said.

The University of Michigan invested £35M in the fund earlier this year. Castleforge said the fund would look at assets in the £20M-£40M range.

The uncertainty around Brexit means very few managers are looking to raise funds to invest solely in the UK. Frogmore, Moorfield and Yoo Capital are all looking to raise equity for UK investment, fundraising data firm Preqin told Bisnow.

Castleforge was previously called Mercer Real Estate, and was set up by former Westbrook directors Brandon Hollihan and Michael Kovacs in 2010.

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