Moorfield Real Estate Fund (MREF) and Moorfield Real Estate Fund II (MREFII) have completed the sale of a diversified real estate investment portfolio to Lone Star Real Estate Fund III (LSREFIII) for c£1 billion. LSREFIII secured senior debt financing from RBC Capital Markets and Wells Fargo.
The portfolio comprises both traditional real estate investments (retail and offices) as well as alternative real estate investments (hotels, residential and student accommodation). Moorfield Group (Moorfield) will continue to have a role as asset manager, alongside Hudson Advisors, to ensure there is continuity of asset management initiatives, asset knowledge and stakeholder relationships.
MREF was raised in 2005 and MREFII was raised in 2007 with both private equity real estate funds managed by Moorfield Group.
The portfolio comprised of companies owning the following assets:
Marc Gilbard, Chief Executive Officer of Moorfield Group said:
“This is the largest transaction that Moorfield has undertaken in its corporate history and is a very effective way for MREF and MREFII to dispose of the majority of their investments.
“We are very pleased with the investment performance this will give to our investors and it allows us to focus on optimising the value of the remaining assets in these funds together with investing our recently raised MREFIII. We are also glad to be able to continue to work with Lone Star and Hudson Advisors to ensure further value is realised from the assets that they have acquired.”
The transaction has been undertaken ‘off-market’ with Doherty Baines acting on behalf of Lone Star. Herbert Smith Freehills and PWC acted for Moorfield and Allen & Overy, Pinsent Masons, Shoosmiths and PWC acted for Lone Star.