PAG and Moorfield launch £150m NW property fund
MANCHESTER-based developer Property Alliance Group has teamed up with London-based property investor Moorfield Group to create a £150m partnership, that will acquire development and investment opportunities in the North West.
The companies said the joint venture fund, which will see both parties contribute capital, would allow them to “take advantage of current market opportunities” and acquire assets with values of more than £50m.
The partnership will initially aim to aquire £150m worth of assets over the next two years but added it has the flexibility to extend well beyond this.
Property Alliance Group will be responsible for the property and asset management of partnership investments, using its relationships with regional agents, banks and occupiers to identify off-market opportunities.
Meanwhile Moorfieldwill bring its £1bn of spending power to the table, under its MREF II Fund.
David Russell, chairman of PAG, said: “Alliance has stood the test of time, even in these difficult market conditions, to prove its status as a leading regional player. 2010 is a good time to step up our activities and this partnership with Moorfield means that we are open for business on a larger scale.
“As well as Moorfield’s access to investment and development capital, it also provides Alliance with strategic links through its investments in traditional core sectors such as retail and its investments in non-core sectors such as student accommodation, retirement living and hotels and there will be spin-off opportunities in these areas.”
Marc Gilbard, chief executive of Moorfield Group, said: “We are confident Moorfield can leverage on Property Alliance Group’s capabilities and support their plans and we look forward to building a very substantial relationship with them.”
Robin Priest of Beachwood acted on behalf of Alliance and will have an ongoing involvement in the joint venture.
