The Netherlands ABP and Denmarks ATP have signed up for a £500m (€724m) real estate joint venture. The civil service and labour market funds have teamed up with the management team of Hemingway Properties to form Greenhills Real Estate Ltd.
The new firm will acquire and operate office, industrial and mixed-use properties with high value-added potential in the UK. The management is also co-investing in the new firm.
Greenhills has bought 30 office and industrial properties for 220m from Scarborough Development Group.
Greenhills said: ABP and ATP are each investing an initial 40m of equity in the first closing to allow for the acquisition of the portfolio.
Greenhills is seeking further investors to capitalise it at 500m.
The business plan is to acquire income producing commercial property investments that are, or have the potential to become, of institutional investment quality.
Our vision for Greenhills Real Estate was to create a dedicated long-term platform in the UK to capitalise on the skills and experience of the management team, said Greenhills chief executive Stephen Jobburn.
We are delighted to continue our relationship with ABP, and welcome ATP as a highly valued investor.
The Clearwater portfolio represents an excellent first acquisition and really kick-starts the Greenhills business plan, said ABP senior portfolio manager Rob Bingen.
ABP, as a major shareholder in Hemingway, has a long-standing relationship with the company and we have been impressed with its track record and management capabilities.