US opportunity fund manager Starwood Capital and ING Real Estate have formed a joint venture to invest in the UK property market. Starwood plans to allocate 25% to 45% of its sixth opportunity fund, which is expected to close this month, with a large chunk headed for UK projects. The fund is expected to raise $700m of equity.
Global financial group ING, through its UK asset management subsidiary Baring, Houston & Saunders, has lined up £250m for investment in UK property through jvs this year. The opportunistic jv will target office and retail assets. Starwood will invest 75% of the equity in each project and ING 25%. The partners said that they had not fixed the amount that would be spent in the UK, and that investment would be on a deal-by-deal basis, with each geared individually. However, it is estimated that the jv could spend up to £200m of equity.
Simon Latham, a senior director at BH&S who will be working on the strategic asset management of the jv, commented: “We are very much looking forward to the challenges the venture will bring and being able to fully participate through the ING equity investment.”
He said the jv would take advantage of BH&S’s asset management skills and Starwood’s capital markets and financial structuring capabilities.
