Thursday, 12 February 2015
Moorfield completes c.€1.35 bln diversified investment portfolio sale to Lone Star (UK)
Moorfield Real Estate Fund and Moorfield Real Estate Fund II have completed the sale of a diversified real estate investment portfolio to Lone Star Real Estate Fund III for approx. £1 bln (approx. €1.35 bln) LSREFIII secured senior debt financing from RBC Capital Markets and Wells Fargo.
The portfolio comprises both traditional real estate investments (retail and offices) as well as alternative real estate investments (hotels, residential and student accommodation). Moorfield Group (Moorfield) will continue to have a role as asset manager, alongside Hudson Advisors, to ensure there is continuity of asset management initiatives, asset knowledge and stakeholder relationships.
The portfolio comprised of companies owning the following assets: The Salisbury – office and retail, London; Pinnacle – office and retail, Leeds; Towers – business park, Manchester; Skypark – offices (& mixed use), Glasgow; Brindleyplace (40% interest) – offices (& mixed use), Birmingham; Velocity Village – residential (& mixed use), Sheffield; Sovereign Reversions (50% interest) – residential equity release portfolio, Mercure & MGalleries – hotel portfolio, Shearings – hotel portfolio, Domain (Queens Road) – student accommodation, Winchester.
Marc Gilbard, Chief Executive Officer of Moorfield Group said: “This is the largest transaction that Moorfield has undertaken in its corporate history and is a very effective way for MREF and MREFII to dispose of the majority of their investments.”
The transaction has been undertaken ‘off-market’ with Doherty Baines acting on behalf of Lone Star. Herbert Smith Freehills and PWC acted for Moorfield and Allen & Overy, Pinsent Masons, Shoosmiths and PWC acted for Lone Star.
Source: FTI Consulting