Moorfield Group

Home

• Corporate Profile
  • The Team
  • History
• Investment Strategy
  • Real Estate
  • Corporate
  • Asset Management
  • Investment Process
  • Origins of Deal Flow
• Our Investments
  • MREF Investments
  • MREF II Investments
  • Moorfield Group Investments
  • Historical Deal List
• News
• Contacts
  • Moorfield Contacts
  • Related Contacts
• Sitemap / Search
• Corporate Social Responsibility
  • Sustainability Statement
  • Moorfield Foundation
• Investor Login

Moorfield Capital Partners Real Estate Portfolio

• In March 1999, Moorfield led the origination and acquisition of the £396.3 million purchase of a pan-UK portfolio of 75 assets (and over 750 tenants) formerly owned by funds controlled by a UK-based insurance group, Royal & SunAlliance (“RSA”)
• The financial structure of the transaction was one of a number conceived by Moorfield and was negotiated to suit both the vendor and the purchaser. In addition to procuring a senior debt facility of £295 million from a bank, Moorfield also negotiated a £72 million vendor loan note
• The assets were acquired in two limited partnerships – one investment and the other trading, based on the individual business plans for each of the assets
• The portfolio comprised a wide range of assets. Examples include: a business park, known as Kembrey Park, comprising over 750,000 square feet of space near Swindon (£40.6 million), a retail and office shopping centre in Liverpool (£7.6 million), office buildings in London (£26.5 million) and Birmingham (£19.5 million) and industrial space near Gatwick Airport (£7.0 million)
• A number of portfolio disposals were made in the six months after completion of the acquisition. By the end of 1999 all the equity capital had been returned to the investors and the investment transaction had been substantially de-leveraged and all of the equity risk removed
• Other assets were identified as having significant asset management opportunities
• In 2001 the balance of the senior debt facility originally negotiated as part of the acquisition finance package was refinanced and re-leveraged to take advantage of the favourable interest rate and lending climate
• By the end of 2003, 71 assets had been sold for approximately £400 million against an original cost of some £337 million. Those that remained had an acquisition cost of £59.3 million but including capital expenditure since acquisition of £9.1 million and revaluations of £5.0 million they were included in the audited financial statements for the year ended 31 December 2003 at £73.4 million