Tunstall Real Estate Asset Management, a newly formed pan-European alternative investment management firm, and Starwood Capital Group, a leading global private investment firm, announced today that a 50/50 joint venture comprising controlled affiliates of the two companies has acquired Pinnacle Group. Terms of the transaction were not disclosed.
Pinnacle is focused on housing-led regeneration projects across the United Kingdom in partnership with the public sector. The company specialises in a long-term, integrated approach to successful regeneration that combines investment in master-planning and place making with seamless neighbourhood services. Established over 20 years ago, Pinnacle now employs approximately 2,300 professionals, with a turnover for the year ending 31 March, 2017 of more than €103m (£90m).
Tunstall and Starwood Capital have identified a significant opportunity to leverage the existing Pinnacle platform by providing substantial capital resources that will allow the company to invest in and deliver large-scale regeneration projects—a compelling growth sector in the UK real estate market. The existing senior management team will remain in place and has demonstrated its commitment to the transaction by investing alongside Tunstall and Starwood.
Roger Clarke, Chief Executive of Tunstall said: “The acquisition of Pinnacle, alongside the existing management team, together with our planned investment into its pipeline of current and future projects, represents a compelling opportunity for us. In partnership with the public sector, we look forward to providing much-needed new homes, as well as the regeneration of communities across London. This is a significant and exciting first acquisition for Tunstall and fits perfectly with our strategy to deploy capital across all sectors of real estate.”
Adam Shah, Managing Director at Starwood Capital: “This acquisition allows our firm—via Pinnacle’s strong track record of leading public/private partnership-led housing regeneration projects—to invest through an emerging and exciting model to provide housing across all price points and tenures in the United Kingdom.”
Perry Lloyd, Pinnacle’s Chief Executive said: “I have every confidence that our new shareholders will allow Pinnacle to build on its existing capability and to respond positively and even more innovatively to the UK’s housing crisis. These are very exciting times for Pinnacle—none of which would have been possible without the support of our previous shareholders, Henry Cheng and Sammy Lee.”
