Brockton Capital is understood to have secured around £450m of equity for its third UK fund, putting it on track for a record fundraise.
The London-based private equity real estate investment manager is believed to have accrued the commitments for Brockton Capital Fund III in less than six months since starting its fundraising drive.
It is thought to be aiming to raise £750m of equity before a final close at the end of the year.
With gearing of up to 60%, this would give the fund total firepower of £1.2bn, making it the group’s largest vehicle to date.
A variety of investors, including pension funds, insurance companies and private family offices, have already committed to the vehicle, which could include as many as 50 investors by the time it closes.
Firms such as LMS Capital, Hermes and Alony Hetz, which invested in the group’s first fund, are expected to reinvest. The first fund raised £150m of equity from 15 investors in 2006.
Brockton, founded by David Marks (pictured) and Jason Blank in 2005, raised £500m of equity for its fully invested second vehicle in 2010.
Roughly 50% of Brockton’s investor base is from the US, with the balance split between European and UK investors plus a small number of Singaporean and Japanese commitments.
In line with its previous vehicles, the value-add/opportunity fund will look to invest in mixed-use assets with a focus on London, although will also look at the South East and regions.
It is thought that the third vehicle, which is expected to have a four-year investment period, will be used to fund Brockton’s and Dunedin’s acquisition of Hansteen’s industrial property unit trust.
The joint venture partners are paying £147.7m – a circa 8% yield – for the 2.8m sq ft portfolio.
In the past month, Brockton is also understood to have made a number of hires, including private equity lawyer Andrew Lobb as chief operating officer and former employee Mark Griller as a principal.
Brockton declined to comment.
joanna.bourke@estatesgazette.com
