The UK-based transaction, valued at over GBP 435 million (US$775 million) at closing, is believed to be the largest secondary real estate acquisition ever completed, and positions Liquid Realty Partners as the leading real estate secondaries firm with approximately $900 million of capital under management.
"This is a significant milestone for both Liquid Realty Partners and the real estate secondaries market in general," said Scott Landress, co-Managing Partner and CEO. "With this acquisition, Liquid Realty has again proven its ability to complete large, complex transactions with sophisticated investors, while further demonstrating the growing demand for exits from private real estate fund commitments. As primary capital commitments to real estate funds continue to grow, investor demand for liquidity and the ability to actively manage their holdings follows. Now institutional real estate investors have a proven, reliable secondary exit available for their portfolios," he added.
Liquid Realty acquired interests in ten JPUTs comprising 200 retail, office and industrial properties which are managed by leading UK real estate fund managers, including Schroders, British Land, Lend Lease and Grosvenor. The properties are well situated throughout the UK with a majority concentration in the UK's strongest economic markets.
"We were attracted by the rare quality of this portfolio," said Jeff Giller, co-Managing Partner and CIO. He added that, "The assets we acquired interests in are predominantly core-quality properties that are leased to credit tenants and, therefore, will generate substantial recurring cash flow. With the UK REIT regime poised to lift off in 2007, and the ongoing supply-demand imbalance for high quality real estate investments both globally and in the UK, we believe that the UK market will provide attractive returns on JPUT investments."
A number of the underlying assets held by the JPUTs are trophy UK properties well-known by European institutional investors. Bluewater, the largest and most visited shopping mall in the UK, and Paddington Central, a premier office development adjacent to Paddington Station in central London, are two trophy properties held by JPUTs in the portfolio.
"This transaction demonstrates our ability to complete transactions of any size anywhere in the US and abroad," added Josh Cleveland, Director of Business Development. "Liquid Realty has developed a reputation of delivering liquidity solutions that meet the complex and diverse needs of banks, insurance companies, pension funds and foundations, while maintaining the discretion and trust required by institutional real estate investors."
About Liquid Realty
Liquid Realty Partners (www.liquidrealty.com), the real estate secondaries firm, specializes in acquiring interests in private real estate funds, partnerships and trusts on a secondary basis. Founded in 2002, Liquid Realty manages approximately $900 million of capital. Liquid Realty's principals, Scott Landress and Jeff Giller, are 20-year industry veterans supported by an experienced, professional team. The firm transacts directly with institutional sellers, through intermediaries, and alongside private equity secondary investors. Liquid Realty's past investments range from small, single-fund interests to large, multi-fund portfolios, span all global economies, accommodate unfunded commitments, and encompass core, value-added and opportunistic styles.