The entire management team of Northcliffe Asset Management in the US and Europe have joined FIDAC, the investment management subsidiary of Annaly Capital Management, Inc.
Annaly is the largest mortgage REIT listed on the New York Stock Exchange (NLY) which, combined with its subsidiaries, owns or manages approximately US $120 billion in assets (as at June 30, 2011).
FIDAC is the external manager of CreXus Investment Corp., a commercial mortgage REIT (NYSE: CXS) which invests in the sale-leaseback market. Northcliffe's European team is now part of FIDAC UK Limited, the European business of FIDAC.
Alistair Calvert, Co-Founder of Northcliffe and now Head of European Equity Real Estate for
FIDAC said: "The Northcliffe team joining FIDAC is a great fit. This allows FIDAC to further broaden its investment product range, both into direct real estate investment as well as into Europe.
The depth of resources and relationship with the Annaly family of companies should allow us to grow into a leading player in both the sale-leaseback and commercial debt sectors in Europe."
The European sale-leaseback market has been growing rapidly in the last couple of years, partly driven by the illiquidity in the corporate credit markets. This expansion is projected to continue to gather pace, due to the underdeveloped nature of the European sale-leaseback market; at US $4.0 trillion it has twice the level of owner occupied commercial property compared with the United States. In addition, there is a substantial continuing opportunity for real estate debt investments in Europe.
Gordon F. DuGan, the former CEO of W. P. Carey & Co and now Global Head of Equity
Commercial Real Estate Investments for FIDAC, said: "We have assembled one of the most experienced global net lease teams. This combined with the successful and substantial track record of the Annaly family of companies provides us with a unique opportunity to capture a significant share of the net lease market in both Europe and the US. Furthermore, we will also assist in the expansion of FIDAC's established real estate debt business."
Source: Bellier Financial
