Lone Star has bought a £1bn portfolio of UK properties backed by RBC Capital markets and Wells Fargo.
The portfolio was bought from private equity investor Moorfield’s Real Estate Fund and Real Estate Fund II. The investment covers retail, hotels, residential and student accommodation assets from a portfolio of companies.
The deal was on behalf of Lone Star’s Real Estate Fund III with financing in the form of senior debt believed to be shared equally between the two banks.
Included in the purchased assets were:
- 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.
RBC and Wells Fargo are known to have worked with Lone Star on other large finance deals, but are not exclusive partners with Lone Star on such investments.
