Who’s Got The Money? The 7 Largest Funds Targeting UK Property Right Now
Values and rents are falling but billions of pounds of investment still flowed into UK property in 2018 — £20B in Central London alone, according to Savills, in line with 2017 and 25% above the 10-year average.
Will the same be true in 2019, and if so, who has the money to spend? Here are the seven largest funds that have an allocation to UK property that either closed in 2018 or are in the market raising capital now, according to data from Preqin. Have these people on speed dial.
Aermont Capital Real Estate Fund IV
Aermont Capital raised €2B for its fourth fund in October. Léon Bressler’s firm has been one of the savviest opportunity fund investors in the UK in the last few years, buying Pinewood Studios and then refinancing it at a profit, and also making a strong return on the purchase and sale of 1 Poultry in the City.
Laxfield raised £750M for a UK debt fund in September, making it one of the largest property debt funds ever raised in the country. The fund provides senior debt loans of up to 75% loan to value across nearly all UK real estate sectors, and can write loans up to £100M.
Exeter Europe Value Venture III
U.S. investor Exeter raised €750M for a value-add fund that can invest across Europe, and will look to buy industrial assets and business parks. It has stuck to the former in the UK thus far, but with out-of-town office values dropping, it could see value in the latter.
AG Europe Realty Fund II
Angelo Gordon raised €698M in April last year for its latest European value-add fund, and has already made significant investments in the UK, principally the £95M purchase of Millennium Bridge House in the City in November. Leases on the 188K SF building run to 2020, when the building is likely to be refurbished. It is also buying industrial assets with Quidnet Capital.
Ares European Real Estate Fund V
Ares is targeting €1.25B for its fifth European opportunity fund, and has already held a first close, raising €547M. In October it bought a portfolio of South East offices for £146M and it is also investing through its aparthotel and build-to-rent platform Native.
PfP Capital Build-to-Rent Fund
Places for People is a housing association that has pushed the envelope in terms of finding innovative ways to fund its home-building programme. It is looking to raise £550M to fund new build-to-rent schemes across the UK.
Catalyst European Property Fund III
Led by industry veteran Julian Newiss, Catalyst Capital is looking to raise €500M for a value-add fund investing across Europe, including the UK.