Moorfield Group (‘Moorfield’), the UK-focused real estate investment manager, today announces a series of promotions across its senior leadership and origination teams:

• Marc Gilbard, currently Chief Executive Officer, is to assume the newly created position of Executive Chairman and share his current CEO responsibilities with Charles Ferguson-Davie. Marc joined Moorfield from Goldman Sachs over 28 years ago and founded the Company’s private equity real estate strategy. In his new role, Marc will continue to Chair the Moorfield Group Board as well as the Strategy, Investment, Remuneration and Audit/Risk Committees.

• Charles Ferguson-Davie will remain as Chief Investment Officer while assuming joint CEO responsibilities. Charles joined Moorfield from Lazard in 2005 and has been CIO since 2013, having joined the Moorfield Group Board in 2011. As co-CEO, he will assume greater managerial responsibility, including Chair of the Operational Board, alongside his existing functions as CIO.

• Steve Hall, previously Group Finance Director, is joining the Moorfield Group Board as Chief Financial Officer.

• Sadie Malim, previously Head of Special Projects, ESG and Legal, is joining the Moorfield Group Board as Chief Legal & Corporate Development Officer. Both Sadie and Steve have been with Moorfield for over 15 years and have sat on the Moorfield Investment Management Board since 2021.

Within the origination team, which is led by Chris Perera – who was promoted to Head of Origination in September last year – there have been the following promotions:

• Pablo Hutchinson, previously an Investment Associate, is to become a Senior Investment Manager. He will continue to lead on origination for Moorfield’s residential and student accommodation strategies.

• Oliver Wallbridge, previously an Investment Analyst, is to become an Investment Associate.

Marc Gilbard, Executive Chairman and co-CEO of Moorfield Group, said: “The restructuring of our senior leadership team will serve to strengthen both our Board and Company by taking advantage of our long established complementary and diverse skill set, thereby also ensuring we retain Moorfield Group’s position as a leading UK-focussed real estate investment manager.

“I have overseen several transformations at Moorfield, from a publicly listed local asset and operational partner to a private equity investment, asset and operational manager, partnered and trusted by blue-chip institutions globally for our ability to identify sector disruption and emerging trends. I would like to thank our investors who have supported us on this ongoing 28-year journey and continue to place their trust in us.

“Moorfield has been an early entrant into many of the alternative sectors that are now becoming increasingly mainstream, having entirely exited cyclical sectors such as retail, office and hospitality/leisure some years ago. Moorfield’s focus is currently on the living and storage sectors which we believe to be supported by structural drivers of demand and a shortage in suitable supply’’.

Charles Ferguson-Davie, co-CEO and Chief Investment Officer at Moorfield Group, said: “Our thematic approach to investing by targeting sectors marked by growing demand, a lack of fit-for-purpose supply and low levels of institutional ownership, has positioned us well for the coming cycle.

“A reallocation is taking place within institutional investors’ real estate portfolios, with alternative real estate asset classes becoming increasingly mainstream thanks to compelling structural supply / demand dynamics, greater insulation from GDP fluctuations and the promise of inflation-linked income.

“As evident in the launch of MREIT, our residential-for-rent-focused private REIT, we are constantly innovating to create new ways for investors to access emerging opportunities in UK real estate and believe 2024 will be a great vintage for value-add investing.”

• Moorfield has completed the construction of The Apiary in Ealing, a new 81-studio co-living community
• The concept is a hybrid of Moorfield’s previous BTR and PBSA projects in the fast expanding co-living sector

UK-focussed real estate fund manager Moorfield Group (“Moorfield” or “the Company”) has completed the construction of The Apiary, an 81-studio co-living community in Ealing. The scheme marks Moorfield’s first investment in the fast-growing co-living sector, which has tripled in size in the UK since 2019.[1]

The Apiary’s sophisticated studio apartments are in a modern building adjacent to Ealing Broadway station, which help meet the demand for affordable, high quality and flexible accommodation from young professionals and students living in the area.

The scheme hosts well-designed independent studios, ensuite bathrooms and kitchens and shared amenity spaces.

The building is located less than a one-minute walk from Ealing Broadway’s major single-level interchange station, and will connect residents to destinations across the District, Central and Elizabeth lines.

Designed to achieve BREAAM Very Good as a minimum standard, The Apiary hosts a variety of purpose-designed amenity spaces, including a contemporary private dining area, wellness studio and rooftop terrace with expansive views over the city.

The Apiary was forward funded by Moorfield’s fifth value-add fund, Moorfield Real Estate Fund V (MREFV). In January, Moorfield also announced a funding agreement for a 440-home build-to-rent (BTR) development in Greater Manchester.

Moorfield was an early mover in the UK living sectors, entering purpose-built student accommodation in 1997, retirement villages in 2008, and BTR in 2012.

Heiko Figge, Head of Operational Asset Management at Moorfield Group said:

“Construction completion for our first co-living investment marks a major milestone within our UK living sector strategy and follows our extensive experience in purpose-built student accommodation and build-to-rent. There remains a structural under-supply of high-quality homes for rent, especially in major cities like London, and we see harnessing institutional capital into residential investment as being key to solving the housing crisis.

“The Apiary’s quality design, amenities and robust sustainability credentials will provide a top-tier rental offering to one of London’s most vibrant and accessible submarkets, perfectly located to suit the needs of young professionals.”

[1] https://www.savills.co.uk/insight-and-opinion/savills-news/347682/size-of-the-uk-s-co-living-sector-trebles-since-2019–amidst-strong-appetite-amongst-global-investors-for-the-product

• Moorfield will fund 440 home Multifamily BTR development in fourth agreement with Glenbrook
• Moorfield was an early mover in UK BTR market, assembling a 1,000+ home portfolio between 2012 and 2017
• Lumina Village will be part of flagship Civic Quarter regeneration programme

UK real estate fund manager Moorfield Group (“Moorfield”) has entered into its fourth development agreement with Glenbrook, on behalf of its Moorfield Real Estate Fund V, forward-funding a 440 home Multifamily Build-to-Rent (BTR) development in Trafford, Manchester.

Moorfield – which acquired the site with full planning consent – and Glenbrook will deliver the 440 BTR units at Lumina Village, with the remaining 199 units being delivered by Glenbrook on behalf of Clarion Housing Group as Shared Ownership and Affordable Housing tenures.

Lumina Village forms part of the Civic Quarter Master Plan, where Trafford’s 55 acre Civic Quarter – less than half a mile from Manchester United’s Old Trafford football stadium and adjacent to Old Trafford cricket stadium – is being regenerated to provide up to 4,000 new homes, public realm, green space and 50,000 sq m of new office and commercial stock. Plans include the redevelopment of c.20 hectares of brownfield land.

Set to complete in 2026, Moorfield’s £120m GDV scheme will be arranged across four buildings and a central podium, with residential accommodation including apartments and townhouses, which will be aimed at young professionals and families. All residents will have access to ground and podium level amenities; resident lounges, reception areas, co-working space, a gym and studio, roof terrace, cycle storage and a 200 space car park. Communal landscaped green areas will be the largest of any BTR development in Manchester.

A range of decarbonisation initiatives at the construction and operational stages are planned as part of an ESG-linked development agreement between Moorfield and Glenbrook. At least 95% of homes will attain a minimum EPC B rating and net zero operational carbon will be achieved through a full-electrification of the scheme. Further measures include the use of cement replacements and other recycled building materials, installation of photovoltaic roofing and electric vehicle charging points, and biodiversity net gain.

Lumina Village is the fourth Multifamily BTR development by Moorfield and Glenbrook, the third in Manchester, and the relationship will have delivered over 1,000 homes when the scheme completes.

The previous partnerships were in Liverpool (The Keel, sold in 2018), in the Castlefield area of Manchester (The Trilogy, sold in 2021), and in Salford Quays, Greater Manchester (Duet, sold in 2022). Moorfield’s other BTR development was The Forge in Newcastle, which was sold in 2019, and Moorfield also converted Velocity Village, a scheme that was designed for sale, into a rental community in Sheffield, before sold in 2015.

Moorfield was one of the earliest movers in the UK BTR market, which followed on from its activities in the student accommodation market through Domain, a 5,000 bed platform that was established in 1997. This has also been complemented by establishing other living sector strategies in student housing of multiple occupation (HMO), co-living, and single-family housing, as well as in integrated retirement communities and nursing homes.

The UK fund manager’s residential strategies are targeting the combined delivery of an initial 5,000 homes, with MREIT, Moorfield’s private real estate investment trust established in the summer of 2023 – targeting £500m of investment capacity, with an initial focus on aggregating a portfolio of family homes and HMOs.

Charles Ferguson-Davie, Chief Investment Officer, Moorfield Group, comments:

“Lumina Village is a fantastic asset in one of the UK’s most attractive BTR markets, and the next in our strong relationship with Glenbrook, whose expertise we value enormously.

“Our early BTR investments performed well and we are now excited to be getting back into the subsector, having been priced out for a number of years and having sold all of our previous projects. We have delivered some of the UK’s best, market-leading schemes; Duet being the highest ranked UK BTR investment at one point, and we look forward to this new investment now delivering the next stage in design and customer service that will make it fit for purpose for future demand.

“We think the residential sector continues to offer opportunity, driven by an acute supply and demand imbalance, and the opportunity to provide a far better offering in the market place.”

Ian Sherry, director at Glenbrook, adds: “Reaching this funding milestone at Lumina and our fourth BTR funding deal with Moorfield is a huge accomplishment for all those involved. When completed, the scheme will deliver much needed rental housing in an excellent, well-connected location. Construction has already commenced and we look forward to updating as the the development progresses.”

Shoosmiths, Quartz and CBRE advised Moorfield.

• UK real estate fund manager acquires warehouses for c.£12m as part of its ongoing logistics strategy
• Totalling 123,000 sq ft, the two assets are located in South Yorkshire and The Golden Triangle
• Moorfield Group is targeting a £100m urban logistics portfolio within its latest value-add fund

UK-focussed real estate fund manager Moorfield Group (“Moorfield”) has added 123,000 sq ft of warehouse space to its urban logistics portfolio with the acquisition of two assets for a combined sum of approximately £12m.

In Tinsley, Sheffield, Moorfield has completed a 10-year sale-and-leaseback agreement for a 61,000 sq ft urban logistics unit with Tinsley Bridge Group, one of South Yorkshire’s largest manufacturing and engineering businesses. Built in 2015, the asset is located next to a site which is to be redeveloped to create a 200,000 sq ft grade A logistics unit.

In Northamptonshire’s Wellingborough, which sits within ‘The Golden Triangle’, one of the UK’s most prosperous and economically productive regions, Moorfield has acquired a 73,000 sq ft facility. The asset is let to Booker Retail Partners – a leading wholesale retailer owned by Tesco Plc – on a long-term lease. Booker Retail Partners has occupied the unit, which is adjacent to its national distribution centre, since 1994.

The acquisitions are part of the Moorfield Logistics Partners (“MLP”) series, the Group’s urban logistics strategy, the latest being launched in 2022, and which is targeting £100m in assets under management. This MLP portfolio is being funded by Moorfield Real Estate Fund V (“MREFV”), the manager’s fifth value-add fund.

Both transactions are aligned with MLP’s strategy of acquiring modern, fit-for-purpose assets with single users – in locations with limited supply and strong underlying demand fundamentals. Another core focus for MLP is acquiring assets with potential for sustainability focussed refurbishment.

Moorfield has assembled a portfolio of 4 units over the last 12 months for MLP, with a number of additional opportunities under review. Previous transactions have been completed in Greater Manchester’s Irlam, and the West Midlands’ Castle Bromwich. Overall the portfolio is targeting a c.6-7% initial yield with a c.8% reversionary yield potential.

This MLP will build on the success of Moorfield’s previous logistics investments, which included significant portfolios that were aggregated and sold in 2019 and 2021.

In addition to urban logistics, Moorfield has active strategies in the adjacent self and open-storage sectors. The company has been assembling an open-storage portfolio with Peloton Real Estate, which currently includes 8 assets across 60 acres, valued at £60m. Moorfield’s self-storage portfolio with Storage King is now approaching 600,000 of net lettable sq ft, with a value of c.£200m.

Chris Perera, Head of Origination at Moorfield Group, comments: “These assets are excellent additions to our growing portfolio of high-quality warehouses. There is scope to make environmental improvements, that should enable value-uplift and help unlock reversionary potential.

“There is an undersupply of high-quality, mid-sized and well-located stock, presenting an opportunity for investment. We intend to build another portfolio, strengthening the reputation we have developed in the sector, off the back of two successful previous exits of a similar profile of assets in recent years.”

1. UK fund manager Moorfield Group enters into development agreement with Melberry for £42m GDV scheme
2. Purpose-built student accommodation (PBSA) development will deliver 293 beds in Lincoln and follows completion of their first project in July 2023
3. Scheme is part of Moorfield’s “Zennor” partnership with Funding House, which supports in origination and deal structuring

Moorfield Group (“Moorfield”), the UK real estate fund manager, has entered into its second development agreement with Melberry Developments (“Melberry”), on behalf of Moorfield Real Estate Fund V, for a 293-bed purpose-built student accommodation scheme in Lincoln. It is also Moorfield’s second project in its “Zennor” partnership with Funding House.

The £42m GDV scheme, funded by Moorfield and set to complete in 2024, will include townhouses and cluster flats across almost 90,000 sq.ft and seven buildings ranging from one to four storeys, as well as landscaped gardens.

Moorfield and Melberry will target a BREEAM “Very Good” rating through a range of innovative construction techniques and new green technologies. Delivered by contractor Bowmer + Kirkland on a turn-key arrangement, the fully electrified scheme will include air sourced heat pumps – representing a 60% energy consumption reduction compared to traditional gas heating – and elements of off-site construction. The site’s stone bedrock will be excavated and re-used during construction to reduce embodied carbon emissions, while labour will be sourced locally and local apprenticeships made available.

The development is the second purpose-built student accommodation scheme to be delivered by Moorfield and Melberry, following the completion of the 282 bed “Enso” in July 2023. Taking less than two years to complete, Enso achieved a BREEAM “Excellent” rating and is fully-let to students from the University of Colchester.

It is also the second scheme to be delivered by the Zennor partnership, where Moorfield and Funding House Limited – which supports across origination and deal structuring – provide de-risked funding opportunities in the living sectors. An agreement for the Apiary, an 81 home co-living scheme in Ealing, West London, was completed in February 2022.

Moorfield has established itself as a market leader in UK student housing, having delivered c.5,000 beds through Domain, its purpose-built student accommodation development and operational platform, which was established in 1997.

A further 2,000+ beds are being aggregated through Moorfield’s joint venture with We Are Kin, a partnership that is improving the experience of student accommodation in existing houses of multiple occupation (HMOs). These will form part of Moorfield’s private real estate investment trust, MREIT, which launched in September of this year and will target the single-family housing and student houses for multiple occupation residential-for-rent sub sectors.

Moorfield’s other residential strategies include multi-family build-to-rent housing, co-living, retirement living and nursing homes.

Charles Ferguson-Davie, Chief Investment Officer at Moorfield Group, commented: “We have been investing in student housing for over twenty years and investor confidence in the sector remains resilient, with domestic and international investors keen to increase their exposure to an undersupplied asset class offering risk-adjusted returns and long-term income streams.

“We see a market opportunity in new-build development and refurbishment of existing stock, with both strategies responding to investor demand for high-quality assets with leading ESG credentials.”

David Sarson, Managing Director at Melberry Development Management, commented: “We are delighted to have secured this second scheme with Moorfield Group building on the success of Enso, which has received widespread acclaim and is one of the region’s most sustainable PBSA schemes. Our collaborative work has proved a winning formula in the delivery a high-quality product aligned with market needs and requirements.”

Tim Attlee, Founder of Funding House Limited, commented: “This scheme promises to be another exemplary project from Moorfield and Melberry, and we are pleased to have completed our second transaction in the Zennor partnership. The joint venture has been designed to provide funding solutions to leading residential development partners, enabling the delivery of best-in-class assets in a sector that is central to institutional investment portfolios.”

– MREIT will target £500m+ investment capacity to acquire newly-built and existing assets in the UK residential-for-rent market –

Moorfield Group (‘Moorfield’), the UK-focused real estate investment manager, has launched MREIT, a new investment vehicle that will initially target acquiring existing and newly-built homes within two residential-for-rent sub-sectors: single-family homes (SFH) and student houses of multiple occupation (HMOs).

MREIT has raised £100m of capital to date and is targeting over £500m of investment capacity. The REIT is aimed at institutional investors such as pension funds and insurers rather than retail investors.

MREIT is looking to take advantage of the market opportunity presented by buy-to-let investors exiting the rental market due to increased taxation, mortgage costs and regulation. Nearly half-a-million landlords are expected to sell their rental homes in the next five years according to property consultants Hamptons International, with 140,000 leaving the market last year.

MREIT also sees opportunity in volume housebuilders looking to reduce their stock through bulk sales, and focusing on delivering rental units, in the face of falling demand from first-time buyers and existing homeowners. Data from the Bank of England shows the number of mortgage approvals fell to its lowest level in the five months to July, which has been attributed to rising interest rates and a weaker economy by industry commentators.

The Private Rented Sector is estimated to be worth some £1.5 trillion and almost all of this is currently owned by individual buy-to-let investors, with only 0.1% of landlords owning more than 100 properties⁽¹⁾. Moorfield believe there is an opportunity to provide a better quality of home and service to renters than they typically receive at the moment, through applying consistent brand standards, including design and technology.

Charles Ferguson Davie, Chief Investment Officer at Moorfield Group, said: “We believe that MREIT’s acquisition strategy will offer an attractive exit option for buy-to-let investors looking to sell, as well as housebuilders that are increasingly considering bulk sales in the face of a weakening ‘for-sale’ market.

“We are targeting locations with strong underlying demand, identified for our core demographics – long-term renters and domestic students – but where new supply is limited to ensure that MREIT benefits from sustainable rental growth.

“The success of US single-family REITs demonstrate a way forward for institutional investment into UK residential-for-rent and we are confident that MREIT will help unlock this asset class, which has been difficult for institutions to access due to the granularity and fragmented ownership of existing stock.”

Moorfield expects MREIT’s focus on improving the quality of accommodation and customer service that renters on average incomes receive to appeal to ESG-minded institutional investors.

In recognition of the sustainability benefits of MREIT’s strategy, which is centred around acquiring and upgrading existing stock, MREIT is structured as an Article 8 (‘light green’) vehicle. Moorfield will target improving all EPCs to at least above a C75 level and to B (or above) where possible and will manage the homes in line with Moorfield’s Responsible Landlord Code of Conduct.

Sadie Malim, head of Special Projects, ESG and Legal at Moorfield Group, said: “By focusing on upgrading existing assets to be in line with modern environmental and management standards, alongside acquiring newly-built units, MREIT will enable institutional investors to contribute to the greening of the UK’s built environment.

“Improving the quality of UK housing will have a positive impact on resident’s mental and physical wellbeing, the environment, and local economies.

“In line with our consumer-centric approach across our living sector portfolios, MREIT will offer high quality accommodation with the levels of customer service that we have implemented in the build-to-rent and purpose-built student accommodation sectors as well as a commitment to being a responsible and compassionate landlord.”

MREIT’s current portfolio comprises c.£50m of investments made so far by Moorfield’s fifth value-add fund, Moorfield Real Estate Fund (MREFV), which is split approximately 50:50 between single-family homes and student HMOs.

Moorfield has been active in both these market segments since 2020 and also separately manages c.£100m of similar assets through the manager’s fourth value-add fund, MREFIV.

In addition to these residential-for-rent strategies, Moorfield has been a longstanding investor across the living sectors, being an early entrant in build-to-rent (investing since 2012), retirement villages (investing since 2008), and purpose-built student accommodation (investing since 1997).

Marc Gilbard, Chief Executive Officer at Moorfield Group, said: “Through MREIT, we are pleased to offer institutional investors another route to access a necessity-driven asset class with sustainable rental growth that has typically tracked inflation.

“UK residential has been one of our longest – and strongest – conviction themes, with demographic tailwinds and a stark demand-supply imbalance continuing to underpin values and support resilient rental growth over the long-term.”

Moorfield Group (‘Moorfield’), the UK-focused real estate investment manager, has announced Chris Perera as the Company’s new Head of Origination. Perera, who joined Moorfield in 2013, was previously a Senior Investment Manager.

In his new role, Perera will assume responsibility for the management of the Origination Team as well as continuing to source transactions and sector partnerships.

Perera will work across all asset classes but retain a primary personal focus on the origination of new opportunities in the logistics and storage sectors. Investment associate Pablo Hutchinson, who joined Moorfield’s Origination Team four years ago, will lead on the origination of residential and student accommodation strategies.

Moorfield has been an early entrant into many sectors of current interest, including the storage sectors (logistics, self-storage and open-storage), and the living for rent sectors (build-to-rent, purpose-built student accommodation, single-family homes, student houses of multiple occupation, retirement villages and nursing homes). Moorfield employs strategic specialist partnerships to help with origination and asset/operational management where appropriate.

Charles Ferguson-Davie, Chief Investment Officer at Moorfield Group, said: “Having been instrumental to Moorfield’s success over the last decade, Chris will play a critical role in our ongoing growth in his new role as head of origination, working closely with our sources of new opportunity and existing relationships to cement our market-leading position across a range of emerging and exciting sectors. ”

Chris Perera, Head of Origination at Moorfield Group, added: “It is an exciting time to be stepping into this role. The current market dislocation creates an opportune buying moment for value-add managers like us, while our target asset classes are all underpinned by demographic and structural growth drivers that will persist across market cycles. Far from sitting on the side lines, we remain acquisitive and are confident on the outlook for UK real estate.”

• 282-bed project sets new benchmark for sustainability in Colchester
• Scheme delivered in partnership with Melberry Developments on behalf of Moorfield Real Estate Fund IV
• Completion builds on Moorfield’s leading reputation in student housing

UK real estate fund manager Moorfield Group has completed construction works at Enso, a 282-bed purpose-built student accommodation (PBSA) scheme in Colchester.

Delivered in partnership with Melberry Developments, Enso has been completed on behalf of Moorfield Real Estate Fund IV, which held its final close in 2018.

The project started in 2021, with construction works taking less than two years to complete.

Designed by HNW Architects and built by Watkin Jones plc, Enso includes 282 studio rooms and cluster flats across one building of nine floors. Communal amenities include study, social and gaming spaces as well as indoor and outdoor fitness facilities.

The asset will be operated by CRM, one of the largest student accommodation operators in the UK. First occupation will be from September this year.

Enso is one of Colchester’s most sustainable PBSA schemes, achieving a BREEAM “Excellent” rating and incorporating a series of carbon-cutting measures at the construction and operational phases.

These measures include the supply of electric vehicle charging points, three different types of bike storage, greywater irrigation systems, a water attenuation system that prevents overcapacity into the public drainage system and air source heat pumps to power a zero-gas hot water system. All timbers were fully responsibly sourced.

Enso has also secured a WiredScore Platinum award, the highest available accreditation in recognition of its digital connectivity and infrastructure.

Located on Hawkins Road, less than 20 minutes from University of Essex by foot, students will benefit from the building’s strong transport connections, with the nearby Hythe railway connecting to Colchester mainline station.

Moorfield has established itself as a market leader in UK student housing, having delivered c.5,000 beds through Domain, its purpose-built student accommodation development and operational platform, which was established in 1997.

A further 2,000+ beds are being aggregated through Moorfield’s joint venture with We Are Kin, a partnership that is improving the experience of student accommodation in existing houses of multiple occupation (HMOs).

Moorfield’s student housing portfolio sits alongside other residential strategies such as multi-family build-to-rent housing, single-family rental housing, co-living, retirement living and nursing homes.

Across all these ‘living’ sectors that Moorfield operates in, there is a focus on brand, design, technology and customer experience to create sustainable homes that are fit-for-purpose for the future.

Heiko Figge, Head of Operational Assets at Moorfield Group, commented: “Student housing has been one of the UK’s most resilient asset classes over the past two decades, further proven in the post-pandemic environment, where performance has been challenging in other traditional sectors.

“The UK’s leading reputation on the university world stage continues to attract both domestic and international students, which is exacerbating the accommodation supply-demand imbalances. The student housing sector offers investors long-term, inflation-linked income streams and defensive, structurally underpinned characteristics.

“We are proud of the green initiatives that we have introduced into this building that complement the strategy of environmental improvements we are making to our existing assets. Our exposure to both funding of new development projects and investing in existing homes offers diversification as well as different routes to achieving our environmental goals.”

Richard Harris, Group Delivery, Managing Director at Watkin Jones, commented: “We are delighted to practically complete and hand the Hawkins Road development over to our clients, Moorfield Group and Melberry Developments.

“This project reflects our continued commitment to provide the highest quality PBSA accommodation, in great locations across the UK, that students can call home.

“With sustainability at the forefront and state-of-the-art facilities, this development represents our commitment to elevating standards of student living and creating a homely and positive experience for residents.”

The portfolio, comprising four sites in Newport, Peterborough, Preston and Tewkesbury, and totalling 37-acres, was acquired for £26 million, reflecting a 13.1% net initial yield. All the sites are leased to BCA, t

-Near-term pipeline would boost JV’s assets under management to £90m-

A joint venture (“JV”) between Peloton Real Estate (“Peloton”) and Moorfield Group (‘’Moorfield’’), the UK-focused real estate investment manager acting on behalf of Moorfield Real Estate Fund V (“MREFV”), has completed the acquisition of a four-asset open storage portfolio.

The portfolio, comprising four sites in Newport, Peterborough, Preston and Tewkesbury, and totalling 37-acres, was acquired for £26 million, reflecting a 13.1% net initial yield. All the sites are leased to BCA, the UK’s largest used vehicle marketplace.

The transaction grows Peloton and Moorfield’s owned portfolio to over 50-acres across six sites. 

The JV, which was established in 2022, planned to aggregate an initial £100 million portfolio of open storage assets throughout the UK. Moorfield is the majority investor in the JV, acting on behalf of MREFV, with Peloton responsible for identifying acquisitions and site operations.

The JV made its first investment in July last year with the purchase of an 11-acre site in Garston, Liverpool, for £4 million.

With a number of sites under offer, the JV’s near-term pipeline would expand its owned portfolio to 70 acres across 10 sites, with a collective value of approximately £90m.

The JV aims to grow the portfolio beyond the initial £100 million target, with a continued focus on assembling a geographically and occupationally diverse portfolio of sites to create a secure income profile, while adding value through active asset management initiatives. 

Increasingly an institutional asset class in the United States, open storage is a fast-growing real estate sub-sector in the UK. Occupier demand is being driven by HGV, van and private car parking, recycling, storage of building materials, containers and scaffolding, as well as potential for electric vehicle charging.

Nick Okell, investment director at Peloton, commented: “These assets are aligned with our strategy, being in recognised logistics locations close to established urban centres and providing a strong income return profile.

“We continue to be on the lookout for further acquisitions to add to our rapidly growing portfolio with Moorfield, with a healthy near-term pipeline that will put us within touching distance of our initial target size and provide a solid foundation for future growth.”

Chris Perera, senior investment manager at Moorfield, added: “The rapid success of our open–storage joint venture with Peloton, combined with the sector’s compelling fundamentals, give us strong conviction to keep growing the platform. 

“We have a proven track record of institutionalising emerging sectors across the spectrum of alternative and operational real estate and believe we can replicate our success across other asset classes in open storage.

“Open storage complements our existing strategies in adjacent sectors such as self-storage and urban warehousing, and we remain confident in the long-term performance of the UK industrial and logistics property market.” 

Peloton and Moorfield were advised by Savills, Carter Jonas and WBD. 

Moorfield Group (Moorfield), the UK-focused real estate fund manager, announces, on behalf of Moorfield Real Estate Fund V (MREFV), that it has acquired a single-tenant logistics asset, totalling 56,746 sq. ft..

Located in the West Midlands, the property was acquired from an unnamed UK institutional investor for £5.325 million, reflecting a net initial yield of 6.70%. Atlas Real Estate advised the vendor. Moorfield was advised by Savills.

DURA Automotive, which specialises in the design, engineering, and manufacturing of components for the automotive industry, occupies both warehouses on two separate leases with a WAULT to Expiry of 3.60 years, at a combined passing rent of £380,441 p.a. (£6.70 per sq. ft.).

The acquisition is the first to complete as part of Moorfield Logistics Partners (MLP), Moorfield Group’s latest logistics property investment vehicle, which will be funded by MREFV and target single-user, mid-sized assets close to major urban areas and distribution hubs. The site announced today is located five miles from Birmingham city centre, adjacent to Junction 5 of the M6 motorway.

MLP will build on the success of its previous logistics investments, which included significant portfolios that were aggregated and sold in 2019 and 2021.

In addition to investing in logistics, Moorfield recently entered the self-storage and open-storage sectors through partnerships with Storage King and Peloton Real Estate.

Chris Perera, Senior Investment Manager of Moorfield, commented: “We successfully sold all our outstanding logistics investments in Q4 2021 and see now as an opportune moment to start investing in the sector again. We will focus as before on single-user, mid-box urban logistics assets, with a view to creating a high-quality portfolio of well-located investments.

“Today’s acquisition, a modern, fit-for-purpose warehouse close to one of the country’s major urban conurbations, is illustrative of the type of property we will be seeking to acquire.

“The UK logistics market has strong underlying fundamentals and the mismatch between supply and demand will help drive rental growth, which is why we’re positive on the outlook for the sector despite the wider macroeconomic circumstances.”

– Partnership expands into the South West of England with purchase of four homes –

A joint venture (‘JV’) between Allegra Care, a UK-focused care home operator, and Moorfield Group, a UK specialist real estate fund manager acting on behalf of Moorfield Real Estate Fund V (Moorfield), has completed the acquisition of four nursing, dementia and care homes in Bristol and South Gloucestershire.

The JV acquired the homes from Grove Care, a family-run care home business, for an undisclosed sum. The acquisition, supported by Virgin Money as debt provider, adds a further 183 beds to the partnership’s rapidly growing nursing, dementia and care homes portfolio.

Olive Tree House, a 65-bed home, and Rose Garden, a 40-bed home, are co-located in Patchway. The two properties are modern, fit-for purpose homes where 100% of the beds have accessible wet room ensuites, each allowing for the implementation of Allegra Care’s bespoke ‘household care’ model.

Blossom Fields, a 43-bed home with 100% of the beds having accessible wet room ensuites, is located in Winterbourne and is co-located with The Grove, a 35-bed home specialising in residential dementia care. Both The Grove and Blossom Fields are rated “Outstanding” by the Care Quality Commission.

The four homes provide a range of care services tailored to residents’ needs, with options for specialist dementia and nursing care and 24-hour assisted living for Olive Tree House, Rose Garden and Blossom Fields. The Grove specialises in dementia care.

The homes also offer residents a range of community facilities and wellbeing-focused amenities, including spacious lounges and purpose-built gardens.

The acquisition is the latest by the partnership between Allegra Care and Moorfield, which now own and operate eleven homes across Hampshire, Cambridge, Suffolk, and South Gloucestershire. The two companies aim to create an initial £125 million portfolio of modern, fit-for-purpose nursing, dementia and care homes across the UK, with a focus on areas supported by favorable demographic trends.

The four homes acquired from Grove Care will form the nucleus for the partnership’s Western Region operational cluster, in addition to the already existing Southern and Eastern Regions.

Helen Jones, Chief Executive Officer of Allegra, commented: “We are very pleased to confirm the addition of Olive Tree House, Rose Garden, The Grove and Blossom Fields to our growing family of homes. The homes are well-established, well regarded, attractive, and warm, with strong standards of service. We welcome our new colleagues to the Allegra Care team. We thank our due diligence partners for their efforts. The acquisition heralds a tremendous end to 2022 for Allegra Care.”

Charles Ferguson Davie, Chief Investment Officer of Moorfield, commented: “The UK nursing, dementia and care home market is marked by fragmented ownership and a severe demand-supply imbalance in the face of an ageing population.

“As demonstrated by today’s announcement, we see a major opportunity to create a market-leading portfolio with our joint venture partners Allegra Care, with both parties united in their vision in taking a customer-centric approach to operations that delivers high levels of care and comfort to residents.”

The Directors of Grove Care, commented: “Having established Grove Care over 30 years ago and built the group to become one of Bristol’s leading elderly care providers, we are pleased to secure a sale to Allegra Care. It was clear from the outset that their values and approach to care are closely aligned with ours and we wish them all the very best.”

Robert Kinsman, Regional Director at Christie & Co who brokered the deal commented: “Having worked with the team at Grove Care for over fifteen years we were delighted to represent the family in the sale to Allegra Care. This is a significant transaction in the elderly care sector and underlines investor appetite.” Robert continued “Grove Care is a fantastic addition to the Allegra portfolio. Having brokered the sale of their first care home, St Georges in Weston super Mare in 2019, it’s great to be part of their ongoing growth.”

Allegra Care and Moorfield were advised by CBRE, BCLP & Menzies.

Grove Care was advised by Christie & Co, RWK and Hazelwoods.

-Fast growing sub-sector benefitting from strong logistics demand-

Peloton Real Estate (“Peloton”) and Moorfield Group (‘’Moorfield’’), the UK-focused real estate investment manager, have formed a joint venture (the “JV”) to aggregate an initial £100 million portfolio of open / outdoor storage assets throughout the UK. The JV has made its first investment with the purchase of an 11.4 acre site in Garston, Liverpool, for £4 million.

The open storage strategy will focus on assembling a geographically and occupationally diverse portfolio of sites, with the aim of generating a secure income profile, whilst adding value through active asset management initiatives. Moorfield is the majority investor in the JV, on behalf of its Moorfield Real Estate Fund V, with Peloton primarily responsible for identifying acquisitions and operating the portfolio.

The Garston site was formerly an industrial estate which was demolished in preparation for the development of a residential scheme. The area is set to benefit from the commercial growth being witnessed at the nearby Garston Docks, which is owned by Associate British Ports, and other major infrastructure projects in the immediate vicinity of Speke and South Liverpool.

Open storage is a fast-growing real estate sub sector in the UK, with demand being driven by HGV, van and private car parking, recycling, storage of building materials, containers and scaffolding, as well as potential from electric vehicle charging.

Commenting on the new relationship with Moorfield, Investment Director Nick Okell, at Peloton, commented, “We are very excited to be partnering with Moorfield to bring forward an open storage land strategy. This is a hugely valuable and fast-growing sub-sector of the industrial market and one that is critical to supporting the growth of the economy. We look forward to aggregating a diversified portfolio by location, size and tenant, seeded with this attractive acquisition.”

Chris Perera, Senior Investment Manager at Moorfield, added, “As an established asset manager with multi-sector experience and a UK-wide footprint, Peloton is an ideal fit for us as a strategic partner. Factors including very affordable rental levels and favourable underlying market dynamics, including an acute demand supply imbalance, make this both a highly defensive and growth asset class. The partnership continues our track record of pioneering institutional investment in less established sectors, which are supported by demographic and technological trends, alongside best-in-class operators.”

David Tyson, Director of Asset Management, commented: “The site is close to major transport infrastructure including Garston Docks and Liverpool John Lennon Airport, as well as a number of major manufacturing companies including JLR and Ford. Open storage land is a scarce commodity, and this acquisition provides a necessary resource to support the expansion of these businesses.”

Peloton Real Estate / Moorfield were advised by CBRE on the site acquisition whilst the vendor was unrepresented. CBRE and B8RE will be the retained agents for the site.

Moorfield Group, the UK-focused real estate fund manager (“Moorfield”), announces that it has sold, on behalf of its Moorfield Real Estate Fund III (“MREF III”) and Moorfield Real Estate Fund IV (“MREF IV”), two purpose built student accommodation (“PBSA”) schemes, totaling 789 beds, to a joint venture established between Ares Management (“Ares”) funds and Generation Partners LLP (the “JV”). 

Hox Park, located in Egham, Surrey, provides state-of-the-art accommodation to students of Royal Holloway, University of London, which was recently ranked a Top 25 University by The Times and Sunday Times Good University Guide. Developed by Moorfield in partnership with Royalton Group and opened in September 2018 under its Domain brand, it features 499 student beds, comprising a mix of studios and en-suite apartments. Set within 67 acres of parkland which overlooks the River Thames, Hox Park offers students a high level of amenity, including a private gym and wellness centre, parcel lockers, café space, car parking facilities and a dedicated social and study hub, Hox Haus. 

The Toybox is a 290-bed campus style scheme located in central Birmingham. Developed by Moorfield in partnership with Torsion Group and opened in September 2019, the scheme offers a mix of ensuites and studio apartments and is supplemented by modern, high-quality amenities, including communal spaces, an on-site gym and wellness studio, automated parcel lockers and ultrafast fibre optic Wi-Fi. The Toybox benefits from its close proximity to the city’s leading educational institutions, including the University of Birmingham, Birmingham City University, University College, Newman University College and Aston University. 

These assets will be added to the Here! Student Living brand that currently sits over the joint venture’s six existing operational assets in Cardiff, Exeter, Glasgow, Dublin, and Galway, all of which are fully occupied for the 2021/2022 academic year and are letting quickly for next year. 

Ross Netherway, Head of Origination at Moorfield Group, commented: “Moorfield was a first mover investor into student accommodation in 1997 and it remains a conviction call today as it is so closely aligned to evolving demographic and societal trends. These disposals conclude two successful investments on behalf of our Fund III and Fund IV, enabling us to crystalise attractive returns on behalf of our investors, as we focus on deploying the capital raised for our latest value-add strategy.” 

Wilson Lamont, Partner and Co-Head of European Real Estate Equity in the Ares Real Estate Group, commented: “Student accommodation is a key growth sector for Ares. We believe that these two assets offer strong entry points into two attractive university markets and that they fit in well within our strategy.” 

Alan Artus, Chief Executive of Generation Partners, added: “We are excited to add the Hox Park and Toybox assets to the growing Ares Generation portfolio. Both buildings are highly specified and are serving undersupplied markets where we anticipate student demand will continue to grow.” 

BCLP acted for Ares and Generation. Savills and Shoosmiths acted for Moorfield. 

-Environmental initiatives will make the £40m GDV scheme 64% more energy efficient than a typical Purpose-Built Student Accommodation (“PBSA”) building-

Moorfield Group, the UK-focused real estate fund manager, announces that it has entered into a development agreement with Melberry Developments (“Melberry”), on behalf of Moorfield Real Estate Fund IV, for a 282-room PBSA development in the historic market town of Colchester. In line with its ambitious 2030 net zero commitment, the project, which has Gross Development Value of £40 million, incorporates Moorfield’s first ESG-linked development agreement, with the development team specifically incentivised to achieve a BREEAM “Excellent” rating.

The high-quality scheme, designed by architects HNW and engineers Campbell Reith is expected to complete for the start of the 2023/24 academic year. It will deliver 282 cluster and studio rooms across nine floors, offering generous amenity facilities including social, study and gaming spaces as well as indoor and outdoor fitness suites.

Through both the design and construction stages and once operational, pioneering technology and engineering methods will be used to target reduced embodied and operational emissions, as well as using recycled materials. The building will include Air Source Heat Pump heating of the hot water system, with zero gas usage, and it will be smart system enabled as well as incorporating a greywater irrigation system and charging points for Electric Vehicles.

Located on Hawkins Road, a short walk from the main campus of the University of Essex, students will benefit from the building’s strong transport connections, with nearby Hythe railway connecting to Colchester mainline station. The University of Essex is a top 40 UK university which was named University of the Year at the Times Higher Education Awards in 2018.

The scheme represents the first time that Moorfield has worked with Melberry Developments, who have a track record in delivering successful PBSA projects.  Watkin Jones, a PBSA and Build-to-Rent specialist, has been appointed as the contractor to deliver the scheme.

Ross Netherway, Head of Origination at Moorfield Group, commented: “Sustainability sits at the core of Moorfield’s strategy, and this latest student development, working with partners who share our ethos, will be our most environmentally friendly scheme yet. It is well placed to bring together growing consumer and investor interest in the environment and sustainable development.

“The PBSA sector has been one of our conviction calls for over 20 years, and despite the short-term disruption caused by the pandemic, the longer-term demographic drivers remain hugely favourable. The University of Essex faces a critical supply / demand imbalance of high-quality student accommodation, which underpins our confidence in the future success of this scheme.”

David Sarson, Managing Director of Melberry Developments, commented: “We are delighted to be working with Moorfield to deliver this exciting first development in our planned pipeline together. Our alignment in quality and ESG objectives made agreeing the outcomes of the partnership clear from day one and we look forward to completing a fantastic asset.”

Gwyn Pritchard, Managing Director at Watkin Jones, said: “Our teams are on site and work is already progressing well. We’ve built extensive expertise delivering investment quality homes with the best environmental and social outcomes, and we’re thrilled to be able to support the partners to deliver this highly sustainable accommodation.”

Shoosmiths and Bidwells advised Moorfield. Clyde & Co advised Melberry.

Swiss Life Asset Managers and Mayfair Capital acquire their first residential development in the United Kingdom for an open–ended real estate fund 

Swiss Life Asset Managers and its wholly owned subsidiary Mayfair Capital have acquired their first residential investment in the United Kingdom. Duet in Manchester has been purchased for 73,85 million GBP on behalf of an open-ended fund distributed exclusively by DEKA Immobilien in Germany. The seller was Moorfield Real Estate Fund IV managed by Moorfield Group.  

Duet, developed and operated by the Moorfield Group under its “More” brand, was opened in 2019 and comprises 270 high-quality one, two and three-room apartments. Residents have a range of amenities at their disposal, including a gym, private work rooms, meeting room, waterfront garden, 24-hour concierge service, secure parking and bicycle storage. The development is also pet friendly. Duet has the highest satisfaction rating of all rental apartments in Manchester on Home Views, a platform for reviewing real estate. 

Located in Salford Quays, 15 minutes from Manchester city centre, Duet is close to MediaCity, a media, digital and technology centre anchored by the BBC, which is expected to double in size over the next decade. Significant investments have been made in the site in recent months, including Landsec’s acquisition of 75% of Media City’s shares in November. The jobs created in the future will make the district attractive to other young professionals who will need high-quality and professionally managed rental apartments.  

Jos Seligman, Transaction and Fund Manager at Mayfair Capital Investment Management, says: “Having created the conditions to expand Swiss Life Asset Managers’ residential real estate investments in the United Kingdom, this purchase is the first of several planned acquisitions. Duet is an excellent fit for our thematic focus on high quality modern residential developments which are designed for rental, meet our high ESG standards and provide an attractive demographic profile. As a long-term owner, we will work with JLL as managing agent and the experienced on-site team to maintain the high level of service residents already receive.” 

Christine Bernhofer, CEO of Swiss Life Kapitalverwaltungsgesellschaft and COO of Swiss Life Asset Managers in Germany, says: “This transaction represents a perfect start in the UK market, which provides further diversification for our fund.” 

Ross Netherway, Head of Origination at Moorfield Group, says: “We are proud to have developed Duet together with Glenbrook. The project set a new standard for residential properties in Salford Quays. This transaction is our third successful sale of a fully stabilised residential property in the past year and is in line with our value creation strategy. We have recently achieved a first close of MREFV, our fifth value-add fund, which will continue to invest in sectors supported by structural drivers such as demographics, societal shifts and technological disruption. In the residential sector we have added investing in single-family housing and houses in multiple occupation to supplement our successful track record in city centre Build to Rent apartments, purpose-built student accommodation and senior housing.” 

CMS and JLL acted for Swiss Life and Mayfair Capital. Knight Frank and Shoosmiths acted for Moorfield. 

-Four asset, 300,000 sq ft portfolio with very high sustainability credentials will be operated under established Storage King platform-

Moorfield Group, a UK-focused real estate fund manager (“Moorfield”), announces that is has acquired a 302,000 sq ft self storage portfolio. The acquisition was made behalf on behalf of its Moorfield Real Estate Fund V (“MREF V”) and through its joint venture with Stor-Age (the “JV”), the South African self storage Real Estate Investment Trust (REIT) and owner of leading UK self storage business Storage King.

The portfolio comprises four modern properties with a total gross lettable area (GLA) of 302,400 sq ft.  Strategically located in Banbury (Oxfordshire), Wednesbury (West Midlands), Frome (Somerset) and Amesbury (Wiltshire), the portfolio will be operated by Storage King, which currently provides over 1 million sq ft of storage space across the UK, under its third-party management platform Management 1^st.

Three of the properties have been constructed since 2007 and have proven trading histories, with a blended occupancy rate of over 90%. The Amesbury asset is a new, purpose-built facility scheduled to open in April 2022, offering c. 102,000 sq ft of GLA on full fit-out.

The acquisition is the largest to date on behalf of the JV between Moorfield and Stor-Age, which is targeting a further £50 to £100 million of investment in modern, tech-enabled high-profile self storage assets in the UK. Moorfield, through MREF V, is majority investor in the JV, which retains a strong pipeline of additional investment opportunities into subject-to-planning development sites, turn-key developments and established existing assets.

Chris Perera, Senior Investment Manager, Moorfield Group, commented: “This was a rare opportunity to acquire a portfolio of assets in a high barrier-to-entry and fast-growing sector, which has demonstrated its resilience versus almost all other real estate sectors over the past two years and which is ideally placed to benefit from a number of favorable structural trends. The well-located and purpose-built characteristics of the portfolio are fully aligned with joint venture’s investment strategy, which also marries Moorfield’s leading investment expertise with a best-in-class partner with market leading operational and origination expertise.”

Gavin Lucas, CEO of Stor-Age, added: “This acquisition, as well as the manner in which we have funded it, demonstrates the strength, competitiveness, and sophistication of our UK platform. Following closely on the heels of the recently announced McCarthy’s acquisition in Leeds, it was secured after a competitive bidding process, and then seamlessly packaged by introducing optimally matched in-country equity capital from Moorfield and sustainability-linked debt funding from Aviva Investors.”

-The Fund will continue Moorfield’s 26-year track record of investing in sectors supported by structural drivers such as; demographics and societal shifts as well as technological and environmental disruption-  

Moorfield Group, a UK specialist real estate fund manager (“Moorfield”), announces that is has secured commitments totaling c.£270 million in a First Close of its fifth value add Fund, Moorfield Real Estate Fund V (“MREFV”). The capital has been raised from investors based in Europe, Japan and the US. With appropriate gearing, the Fund will have initial investable capital of c.£650 million. 

Achieved against the backdrop of the pandemic, this First Close is the latest endorsement of Moorfield’s enviable track record, particularly in the operational real estate sectors where it has consistently been among the first to recognise the potential of emerging sectors, as well as cementing its position as a market leader in sustainability. This First Close further demonstrates the renewed international investor appeal for the UK and in real estate sectors that are expected to benefit from demographic drivers, societal shifts and technological disruption.  

The Fund will employ a value-add risk/return approach, seeking both capital growth and inflation-linked income returns, targeting supply/demand imbalances in the residential-for-rent, student accommodation, healthcare, logistics and self-storage sectors. Moorfield will employ its operational expertise and focus on; design, sustainability, technology and community engagement to enhance the customer experience and asset value. The fund will be operated in line with Moorfield’s 2030 Net Zero Carbon commitment. 

MREFV will fund development, pursue portfolio creation and will reposition existing assets through active asset and operational management to create investments with institutional appeal. The primary geographic focus will be on London and the UK’s largest regional cities, which are benefitting from infrastructure investment and the levelling-up agenda, as well as employment and population growth. 

The Fund will leverage Moorfield’s 26-year track record of identifying market trends early and investing in c.£4 billion of UK real estate, of which £3.6 billion has been realised and which has delivered a weighted average 26% IRR and 1.5x equity multiple.  

Marc Gilbard, CEO of Moorfield Group, commented: “Demographic shifts, environmental needs, technological progression and changing customer expectations are all trends disrupting existing real estate and leading to the emergence of new opportunities to create real estate that is fit for purpose. This is true of all the sectors of focus for MREFV and we will be able to draw on our UK focus and considerable experiences, both in asset and operational management, to achieve our goals.  

We will be continuing with the strategies and partnerships established across our prior Funds, as well as evolving our approach to remain at the vanguard of innovation and thereby deliver the value-add returns offered to our investors. We will navigate our way through the coming pandemic recovery period, mindful of the changing economic environment and the risks inherent at such times. We remain very appreciative of the trust and support of our existing investment partners and also look forward to welcoming some new ones.”  

Charles Ferguson Davie, CIO of Moorfield Group, commented: “This successful First Close of our fifth value-add fund reflects the confidence our investors have in our ability to create value-add returns in our selected investment themes whilst investing capital responsibly and in line with our Net Zero Carbon commitment. The disruption that sustainability and climate change has brought requires foresight into a net zero world in order to both protect and create value in real estate. Moorfield is now benefitting from all the infrastructure we have put in place over past years to attract an increasingly climate- and trend aware, global investor base. In addition, investors have been attracted by our track record in the ‘beds and sheds’ sectors and our focus on non-traditional real estate sectors where income growth is correlated with inflation.” 

-£21 million forward funding is initial investment for Joint Venture with Funding House-

Moorfield Group, the UK-focused real estate fund manager, on behalf of its Moorfield Real Estate Fund IV, has agreed to forward fund an 81 bed best-in-class co-living scheme near Ealing Broadway, West London, for £21 million. It represents Moorfield’s entry into the fast-growing London co-living sector, which is expected to be a beneficiary of demand from young professionals looking for affordable, high quality and flexible accommodation.

The transaction is the first investment by a joint venture between Moorfield and Funding House (the “Zennor” partnership), offering experienced developers in the UK ‘Living’ sector the opportunity to enter into forward funding agreements with an experienced and well-respected investment partner. A co-investment mechanism permits developers to generate additional returns through the increased value of assets anticipated following operational stabilisation.

Having acquired the site in November 2019, subject to planning, and subsequently secured consent for 81 units, Urbane London, the specialist, London-focused residential developer, will act as the development manager.

The Squire & Partners designed scheme is expected to be ready for its first residents in late 2023. It will offer 81 high quality en-suite studios across a range of unit types, alongside 1,800 sq ft of amenity space including a south facing roof terrace, co-working space, kitchens and storage for 83 bikes. The BREEAM Very Good scheme has strong environmental and social credentials including an air source heat pump, photovoltaic panels, no gas services, a biophilic design, and a private rooftop for residents to aid wellbeing.

The property is located less than a one-minute walk from Ealing Broadway station, a major single-level interchange station which will connect residents to Heathrow in 15 minutes, Bond Street in 11 minutes, and Canary Wharf in 25 minutes, via the soon to open Elizabeth Line. Ealing was ranked the third best place to live in London last year and benefits from a diverse food and beverage, leisure, hospitality, outdoor amenity and lifestyle offering, which is expected to further underpin strong demand for an affordable, well-designed rental proposition.

The opportunity in the London co-living sector is supported by rapid population growth and a chronic shortage of housing, with the Mayor of London’s Strategic Housing Market Assessment identifying the need for 66,000 additional homes per annum in the capital. London’s population is forecast to reach 9.5 million by 2026, with the private rented sector accounting for 35% of housing. As a result of urbanisation and densification, and with flexibility increasingly cited as a key factor for renters, co-living is well positioned to meet the demand of those people who either don’t want to or are unable to acquire their own home, with the average house in London costing 15x average earnings. Furthermore, the residential sector has been one of the most resilient since the start of 2020.

Ross Netherway, Head of Origination at Moorfield Group, commented: “Increasing demand, underpinned by a growing youthful population and exacerbated by housing undersupply and limited affordability, underpins our conviction in the nascent London co-living sector. This acquisition is fully aligned with our strategy of pioneering investment in sectors benefitting from demographic and societal change, and will deliver a high quality, amenity-led rental product with strong sustainability credentials, in one of London’s most dynamic and well-connected submarkets.

“We are also excited to be partnering with Funding House, pairing our proven investment expertise with experienced and reputable developers in the living sectors capable of delivering sustainable and future-proofed schemes. At the same time, the partnership’s co-investment structure offers developers the opportunity to generate attractive additional returns and ensures all parties are aligned in delivering the highest quality rental product and service to residents.”

Tim Attlee, Founder of Funding House, added: “We are excited to be partnering with Moorfield, who have a long and successful track record of investing in the UK with entrepreneurial partners. This transaction marks our entry into the co-living sector and we expect this to be the first in a significant series of similar investments for the joint venture in the UK ‘Living’ sector.”

Holly Porter, Founding Director of Urbane London, added: “We are excited that the Ealing site has been chosen as the first investment of the Zennor partnership. Between Moorfield and Funding House there is a wealth of experience, and a proven track record. We believe the scheme will showcase the absolute best of what co-living can be. Our aim has been to create sustainable, high-quality homes and socially permeable communities, with design quality at the heart.”

The investment further extends Moorfield’s investment in the UK residential sector, which for many years has comprised investments in Build-to-Rent (More.), student accommodation (Domain) and retirement villages (Audley). More recently, Moorfield has entered the nursing and dementia care home sector with a £125 million partnership with Allegra Care, invested in family homes through the acquisition and leaseback of a portfolio of show-homes from the housebuilder, Avant Homes, formed a £600 million joint venture with Bricklane to invest in single family homes and partnered with We Are Kin to build a nationwide portfolio of professionally managed student houses.

Moorfield was advised by Shoosmiths.

Global investment firm Carlyle (NASDAQ: CG) and ARA Dunedin today announced that their joint venture, established in March 2021, has acquired a portfolio of logistics assets in the UK from Moorfield Real Estate Fund IV for £102 million.

The portfolio comprises 11 distribution logistics assets which total 1 million sq ft in lettable area. Strategically located in the South-East and North-West regions, the portfolio is currently fully leased.

Equity for the investment came from the Carlyle Europe Realty (CER) platform, Carlyle’s pan-European real estate strategy, and ARA Dunedin. This transaction builds on the joint venture’s existing UK distribution logistics portfolio of nine assets acquired earlier this year.

European logistics is a core focus for CER given the sector has proved resilient throughout the Covid-19 pandemic and continues to benefit from the growth in e-commerce resulting in higher delivery volumes.

Anssi Halonen, Managing Director on the Carlyle Europe Realty advisory team, said: “We are delighted to make this addition to our UK logistics platform. The portfolio consists of highly complementary assets to our existing footprint, and the acquisition exemplifies our strategy of identifying well-located assets in the European distribution logistics market, which continues to be an asset class with attractive fundamentals and benefitting from strong structural trends.”

Chris Perera, Senior Investment Manager at Moorfield Group, added: “At Moorfield we are always looking for demographic, societal, technological and other trends that are driving consumer behaviour and having identified those underpinning the growth of the logistics sector many years ago, it has been and will continue to be a key part of our investment strategy. Alongside this we have undertaken a programme of value enhancing initiatives, significantly improving the income characteristics and profile of the portfolio, culminating in this strategically timed disposal.”

Carlyle and ARA Dunedin were advised by Bryan Cave Leighton Paisner, CBRE, CMS, Deloitte and Howden for this transaction.

Moorfield was advised by Womble Bond Dickinson, Savills and PwC.

Carlyle and ARA Dunedin acquire UK logistics portfolio for £102 million 

London, UK, [12] October 2021 – Global investment firm Carlyle (NASDAQ: CG) and ARA Dunedin today announced that their joint venture, established in March 2021, has acquired a portfolio of logistics assets in the UK from Moorfield Real Estate Fund IV for £102 million. 

The portfolio comprises 11 distribution logistics assets which total 1 million sq ft in lettable area. Strategically located in the South-East and North-West regions, the portfolio is currently fully leased.   

Equity for the investment came from the Carlyle Europe Realty (CER) platform, Carlyle’s pan-European real estate strategy, and ARA Dunedin. This transaction builds on the joint venture’s existing UK distribution logistics portfolio of nine assets acquired earlier this year.   

European logistics is a core focus for CER given the sector has proved resilient throughout the Covid-19 pandemic and continues to benefit from the growth in e-commerce resulting in higher delivery volumes. 

Anssi Halonen, Managing Director on the Carlyle Europe Realty advisory team, said: “We are delighted to make this addition to our UK logistics platform. The portfolio consists of highly complementary assets to our existing footprint, and the acquisition exemplifies our strategy of identifying well-located assets in the European distribution logistics market, which continues to be an asset class with attractive fundamentals and benefitting from strong structural trends.” 

Chris Perera, Senior Investment Manager at Moorfield Group, added: “At Moorfield we are always looking for demographic, societal, technological and other trends that are driving consumer behaviour and having identified those underpinning the growth of the logistics sector many years ago, it has been and will continue to be a key part of our investment strategy. Alongside this we have undertaken a programme of value enhancing initiatives, significantly improving the income characteristics and profile of the portfolio, culminating in this strategically timed disposal.”  

Carlyle and ARA Dunedin were advised by Bryan Cave Leighton Paisner, CBRE, CMS, Deloitte and Howden for this transaction.   

Moorfield was advised by Womble Bond Dickinson, Savills and PwC. 

The Trilogy comprises 232 apartments and is 90% occupied 

Barings, one of the world’s largest diversified real estate investment managers has acquired The Trilogy, a fully stabilised income producing build to rent (BTR) asset in Manchester from Moorfield, on behalf of Moorfield Real Estate Fund III, for £53.5 million in an off-market transaction.

The transaction marks Barings’ latest BTR acquisition as part of its strategy to invest approximately €350 million into residential property over 2021. Barings’ living portfolio now comprises in the region of 1,130 residential units and 267 student beds completed or in development.

Developed by Moorfield and launched to the letting market in 2019, the award winning scheme⁽¹⁾ offers 232, one, two and three bed apartments, together with a range of onsite amenities, including a gym, 24 hour concierge, underground car parking  for 75 vehicles (including electric charging points), extensive bike racks, a communal courtyard garden and a residents’ lounge.

The pet friendly scheme is located approximately one mile away from Manchester City Centre in Castlefield, in Manchester’s former industrial heart. It benefits from easy and fast access to strong transport infrastructure making it ideal for commuters with the Cornbrook Metrolink Station, a major interchange on the Metrolink line, only a short walk away. In addition, the scheme is also only four miles from the M60 Manchester Ring Road and nine miles from Manchester Airport.

Darren Hutchinson, Head of UK Real Estate Transactions at Barings, said: “This acquisition was a unique opportunity to enter the attractive Manchester BTR market through a proven operational asset. Manchester is a market we know well, having previously invested in PBSA and prime office space in the city, and we are confident that the list of major occupiers choosing Manchester as their regional hub will only continue to grow in the months and years ahead, further underpinning the attractiveness of the city for young talent from its universities and thereby creating a deep pool of demand for rental accommodation.”

Ross Netherway, Head of Origination at Moorfield Group¸ commented: “Having designed and developed the scheme specifically for rent in partnership with Glenbrook, we achieved full occupancy shortly after opening in 2019. This sale concludes another successful investment for MREF III and closely follows the recent disposal of The Forge in Newcastle. Investment in BTR remains a key limb in our wider beds investment strategy, which also includes student, healthcare and senior living.”

Nick Pleydell-Bouverie, Head of Residential Capital Markets at Knight Frank, added: “As one of the first purpose-designed and operational build to rent assets to have traded in the UK market, The Trilogy represents a landmark transaction for the sector. The weight of both domestic and overseas capital seeking to invest in high-quality product continues to accelerate. This demand is being driven by the sector’s recent strong operational performance, which has taken place against a backdrop of Covid-19 and multiple national lockdowns.”

The strong regional presence of the build to rent sector has grown rapidly over the last five years. According to Knight Frank’s latest research, in the first half of 2021, £2.35 billion of capital was invested into the UK’s BTR sector – 70% of the funds committed were for schemes outside of London.

Barings was advised by CMS. Moorfield Group was advised by Knight Frank and Shoosmiths.

• Moorfield Group and Elkstone Partners investments highlight growing importance of technology in real estate
• They join existing LPs including GPE, Patrizia, Assura, Revcap, and Embassy Group, increasing Pi Labs’ war chest for investment into new Proptech start-ups 

Pioneering European PropTech VC, Pi Labs, announces two new investors who join as limited partners (LPs) into its third institutional fund, Fund III. The new funding gives Pi Labs additional firepower to continue to invest in the next generation of Proptech start-ups and build on its position as Europe’s leading Proptech VC.  These latest investments in the Pi Labs fund demonstrate the growing appetite for exposure to the Proptech sector amongst both UK and international investors.

Moorfield Group, the UK-focused real estate fund manager, and Elkstone Partners, Ireland’s leading Multi-Family Office, are the latest investors to join Pi Labs, highlighting the continued importance of technology in the future success of real estate. It follows the recent announcement that Embassy Group, one of India’s largest real estate conglomerates, has also joined Pi Labs as an LP which will act as the gateway to Asia.

By participating in Pi Labs Fund III as LPs, Moorfield Group and Elkstone Partners will be helping to accelerate the adoption of technology in real estate whilst also demonstrating a commitment to the transformation of the sector through innovative technology, drawing on synergies from Pi Labs proptech ecosystem. Having already invested in 17 companies out of the new Fund since the beginning of the pandemic, Pi Labs is Europe’s most active proptech VC, with over 55 investments in its portfolio.

Pi Labs’ position as Europe’s leading proptech investor will enable the new LPs access to its ecosystem, which includes start-ups from across Europe, the company’s proprietary research, and the cutting-edge ideas in built environment technology emerging from its accelerator programme. This strategic investment will allow the new LPs to trial, pilot, and deploy the latest technologies across their portfolio of properties. As strategic LPs, Moorfield Group and Elkstone Partners will gain early access to Pi Labs’ start-ups and Proptech research and co-investments alongside Pi Labs for select opportunities.

Faisal Butt, CEO & Founder at Pi Labs, said: “We are delighted to welcome Moorfield Group and Elkstone Partners as new limited partners in our third fund. Their real estate portfolios and experience as developers, investors and real estate managers will add strategic value for Pi Labs and our growing portfolio of over 50 companies.  Expanding our Proptech ecosystem across Europe and internationally is central to our success, as we continue to act as the gateway between real estate investors and the rapidly changing Proptech world that we are at the front lines of.

“These new commitments to Pi Labs is not only an endorsement of our market leading position but is also indicative of the wider industry’s prioritisation of proptech as it continues to become increasingly important across every facet of the real estate value chain. The adoption of Proptech has been accelerated due to COVID; we’ve seen this first-hand with the broader deployment of technologies from our portfolio being trialled and rolled out across major institutional real estate assets globally.”

Charles Ferguson-Davie, CIO at Moorfield Group, added: “We have been at the forefront of the evolution of new sector trends in real estate and we are partnering with Pi Labs to help us identify technological innovation that will improve our investment and asset management capabilities. Technology is going to continue to disrupt the way we live and work and we want to ensure that we keep pace with the changing landscape. We are excited to be supporting Pi Labs in their search for the next generation of technology experts who will shape the future of the real estate industry.”

Alan Merriman, Founder of Elkstone, said: “Access to the very best opportunities is key. At Elkstone we have been very deliberate in building up a very select portfolio of international venture fund investments that we look to leverage from a strategic and learnings perspective. it’s a good way to source deals to co-invest in. Real Estate is a space that we know and feel we should have an edge in, so we think there is a natural marriage by working with Pi Labs”.

Pi Labs attracts a global base of LPs, from North America, Europe, Middle East, APAC, and Asia. Pi Labs’ current strategic partners who have invested into Fund III include FTSE-listed Great Portland Estates PLC, FTSE-listed Assura PLC, PATRIZIA AG, among the top 10 real estate investment managers in Europe, pan-European real estate fund manager Revcap and Embassy Group, one of India’s largest real estate conglomerates.

The deal will fund a multi-site joint venture with total Gross Development Value of £500m 

Today’s partnership marks BlackRock Real Assets’ first investment into the UK retirement living sector 

Audley Group, the UK’s leading provider of retirement villages, and BlackRock Real Assets have formed a joint venture (JV) in a landmark deal that marks the investment group’s entry into the retirement living sector in the UK. The joint venture will fund the development of retirement communities including at least three mid-market villages within the Audley Group’s Mayfield portfolio. Rothschild and Co advised Audley, and JLL advised BlackRock Real Assets on the transaction.  

The first village in the JV, Audley Group’s Mayfield site at Watford, will create 255 mid-market retirement living properties with extensive health, wellbeing, care and leisure facilities. The project is well-advanced with strong pre-sales and will be ready for occupation in the summer of 2022. 

With its significant sector experience, scale and heritage Audley will manage the development and the operational running of the village, including the sales and marketing of all the properties.  

Investment into the retirement living sector has accelerated in recent years and BlackRock Real Assets’ entry points to the growth and potential within this nascent sector. The potential for secure long-term revenue streams as well as a positive social impact are factors that are attracting the attention of institutional investors.  

Recent reports point to the attractiveness of new retirement living options for an increasingly affluent and active older generation who are seeking alternatives that give them more control over their lives and an opportunity to live better, for longer. The global pandemic has accelerated this desire as the consequent isolation and fear of residential care has created significant demand. 

Demographic changes are fuelling development activity in the retirement living sector. Across the UK’s ageing population, there are a reported 160,000 households of over 65s added each year with only 7,000 specialist retirement units being built1. Action is needed to address the lack of supply.  

Nick Sanderson CEO Audley Group commented: “Today’s announcement truly is a landmark event, not just for Audley Group but for the whole retirement living sector in the UK. Partnering with a leading global investment team is a major endorsement of our model and the potential for value creation in social and financial terms that exists within the sector. An ageing population coupled with a pandemic has made people question their living choices and means they are rightly demanding access to active communities, greater security and a place where they can thrive in rude health within their own homes for as long as possible. And as this demand continues, we look forward to continuing in partnership with BlackRock Real Assets to fund appropriate retirement living accommodation solutions for the UK market. Our shared focus on the long-term health of our customers, social impact and sustainability, will be central to our ongoing activity. “ 

Thomas Mueller, BlackRock Portfolio Manager added: “This joint venture with Audley Group is another milestone for the BlackRock Real Assets platform. Retirement living is a sector that we had identified early on as offering strong long-term fundamentals in which attractive risk-adjusted returns are achievable. We believe Audley Group has the management experience and scale to deliver. The team lead by James Halstead and Tom Fleming have done an outstanding job in securing a long-term partnership with the market leader in the retirement village space and positioning BlackRock for success2. We believe this is an important strategy that provides retirement housing in a structurally undersupplied market.  Our goal is to enable the senior population to retire in dignity by transitioning to more comfortable and innovative living, whilst also freeing housing to new occupants, such as families. We are excited to embark on this journey with Audley.” 

Audley and Mayfield villages enable owners to live an independent and healthy lifestyle in their own homes with flexible care, wellbeing services and support when needed. These services are accessible to property owners as well as neighbouring communities. Facilities at the villages include a swimming pool, health and wellbeing studio, restaurant, bars and bistro as well as care services. Care is provided by Audley Group’s CQC registered provider. 

-First acquisition for newly formed £125m UK nursing home partnership-

London – 29 April 2021 – Allegra Care, the UK-focused care home operator, and Moorfield Group, a leading UK specialist real estate fund manager acting on behalf of Moorfield Real Estate Fund IV (Moorfield), have completed the acquisition of Sentinel Health Care, the privately owned nursing home group.

Sentinel Health Care owns a portfolio of five operational nursing homes providing 200 beds, located across Hampshire. All five homes offer attractive facilities including communal lounges and landscaped gardens and are characterised by providing high quality care. The New Forest, Dunwood Manor, Waverely Lodge and Cedar Lawn homes are focused on nursing care and the Fordingbridge home is focused on providing dementia care.

This is the first acquisition following the establishment of the partnership between Allegra Care and Moorfield in 2020 which is aiming to create an initial £125 million portfolio of modern, fit-for purpose nursing and dementia care homes in demographically supported locations across Central and Southern England. The partnership will seek to acquire exisiting operational assets, including those offering asset management potential such as the Sentinel Heathcare acquisition, together with newly developed homes.

The acquisition was supported by Allied Irish Bank (AIB) as debt provider.

Commenting on the transaction Charlie Ferguson Davie, CIO of Moorfield Group, said: “We are pleased to have made our first acquisition as part of our partnership with Allegra Care and we look forward to using our combined expertise to deliver the highest quality of accommodation and care. We will continue to look for more opportunities to grow the portfolio and address the under-provision of nursing and dementia homes in the UK.”

Helen Jones, CEO of Allegra Care, added: “We are delighted to have acquired the Sentinel Health Care homes. Sentinel’s well earned long track record of compliant service and commitment to resident care make them an excellent addition to our portfolio. We warmly welcome the Sentinel team into Allegra and turn our immediate attention to integrating the homes into the Allegra model.

Allegra Care and Moorfield were advised by CBRE, BCLP and Menzies

Sentinel Healthcare was advised by Savills, Royds Withy King and Hazlewoods.

-Residential for rent strategy uses proprietary technology to unlock institutional potential of existing UK housing stock-

Moorfield Group, the UK real estate fund manager, and Bricklane, the proptech residential investment platform, have established a partnership (the “Partnership”) that is targeting a £600 million UK portfolio of professionally managed homes for rent. The Partnership, which represents the most significant technology-driven investment in the UK’s residential market to date, will focus on unlocking the institutional potential of existing stock, with the investments to be acquired and managed by Bricklane through its proprietary technology platform, Compass.

The Partnership aims to acquire around 2,000 one to four bedroom houses and flats over the next 24 months with an initial focus on London, Bristol and the South East. Using Bricklane’s technology, the Partnership will target attractive sub-markets with deep granularity, using unique bottom-up data to acquire rental properties that are expected to outperform in those areas at an unprecedented scale. Once units are acquired, the Partnership will seek to grow income and capital values through active asset management and refurbishment, with the aim of delivering a professional, high quality proposition for tenants.

By focusing on existing properties, in particular the 98% of the rental market owned by the UK’s 2.5 million buy-to-let landlords, the Partnership expects to deliver attractive risk-adjusted returns and provide superior service and quality of home to a wider range of tenants, while also avoiding the carbon-cost of demolition and construction. This Partnership sees the UK beginning to follow the example of the US single-family residential market, in which institutional investment in existing granular properties has scaled from near $0 to $40bn in ten years.

Both Moorfield and Bricklane bring a strong track record of investing in and operating residential property. Bricklane specialises in acquiring and managing granular residential for rent across the UK, with existing portfolios in London, Leeds, Manchester and Birmingham. Moorfield, an early investor in the living sector, has a deep expertise in purpose-built student accommodation (Domain – since 1997), retirement living (Audley – since 2008) and Build To Rent (More. – since 2012). Moorfield also recently announced a partnership with We are Kin to focus on the one million bed HMO student accommodation market, with a number of portfolio and individual acquisitions already completed.

Ross Netherway, Head of Origination at Moorfield Group, said: “This Partnership provides us with an efficient and scalable means to find, buy, and manage individual residential properties for rent in our target markets. We are excited to be partnering with Bricklane who have the best-in-class capabilities—both human and technological—to help us deliver on our shared ambition. This Partnership will help further diversify our activities in our ‘beds’ theme and see us drive the professionalisation of a vast but fragmented market.”

Simon Heawood, CEO and Co-Founder of Bricklane, said: “The time is ripe for institutional capital to access and professionalise the mainstream Private Rented Sector. Demand is at an all-time high, while it is becoming less financially attractive for individual landlords to operate in the sector. Moreover, tenants are rightly demanding higher quality service and more secure contracts for their homes.

Access to the mainstream market requires industrialising the acquisition and management of large numbers of individual assets, which is impossible without deep investment in technology. We have spent years building the technology platform, data science expertise and management experience to enable us to capitalise on this opportunity. We are very pleased to be doing this with a group of Moorfield’s track record and calibre, and the scale that this partnership brings will be transformational for our business, meaning that we are the leading platform of our kind in Europe. US operators have shown the potential of granular investment at scale and we believe that the UK’s population of renters deserves properties in which they can be truly at home.”

-Build to Rent pioneers targeting disruption of one million bed student house market-

Moorfield Group, the UK-focused real estate fund manager, and We Are Kin, a business focused on redefining ‘student digs’, have formed a partnership (the “Partnership”) to amass a £50 million portfolio of professionally managed student houses across the UK.

The Partnership is seeded with a £10 million (200+ beds) property portfolio located in targeted UK university cities including Liverpool, Lincoln and Lancaster. The aim is to grow this initial portfolio to over 1,000 beds typically in houses of 5-8 students, beginning with a focus on the Midlands and North. Moorfield is the majority investor, on behalf of its Moorfield Real Estate Fund IV and We Are Kin is primarily responsible for acquisitions and operating the portfolio.

In 2020, We Are Kin was launched in partnership with Young, the specialists in forming asset backed investment partnerships in the living sector, chaired by Build to Rent (BTR) veteran Neil Young. By focusing on delivering a high quality and user-friendly product, We Are Kin is disrupting the student house sector, which is predominantly made up of second and third year students and which is often characterised by sub-standard accommodation and poor service. The partnership will benefit from the We Are Kin executive team’s decade of experience investing and operating in the student house sector.

The new student offer will also take advantage of the extensive experience of both Moorfield and Young. Moorfield brings a wealth of experience through its innovation in the residential sector, where it currently invests in purpose-built student accommodation (Domain – since 1997), retirement living (Audley – since 2008) and BTR (More. – since 2012). The Young team brings over 25 years of experience in the living sector, including pioneering investment in the BTR sector through the launch and growth of Get Living.

Ross Netherway, Head of Origination at Moorfield Group, commented: “Despite the current disruption caused by the Covid-19 pandemic, we remain focused on the student accommodation sector and are confident that student numbers will continue to grow over the next decade. This partnership presents an opportunity for us to diversify our exposure in the sector, as part of our ongoing ‘beds’ investment strategy, and enables us to accelerate the professionalisation of a significant yet overlooked area of the market.

“We identified the student shared living sector as an attractive opportunity and we are excited to be partnering with We Are Kin and Young, who bring with them a deep understanding of the space.”

Neil Young, Investment Chair at Young and Chairman of We Are KIN, added: “Creating the student shared living sector was something Young first explored in 2019. So, launching We Are Kin in 2020 and now partnering with Moorfield so soon is really exciting. Throughout my time in the living sector, we have aimed to dramatically improve the offer for the consumer. Redefining the HMO market has always interested me, and we now intend to materially disrupt this sector, which is currently dominated by amateur landlords, but which has huge institutional potential.

“The Moorfield team bring significant knowledge and we expect this to be a very rewarding partnership over the coming years.”

-Portfolio now totals c.900,000 sq ft in sector benefitting from accelerated e-commerce trends-

Moorfield Group, the UK-focused real estate fund manager, on behalf of Moorfield Real Estate Fund IV (MREF IV), announces that it has acquired four single-tenant logistics assets totaling 205,322 sq ft, in three separate transactions. Located across the South East, the combined purchase price of c.£25 million reflects a blended net initial yield of c.7%.

In line with its strategy of identifying real estate supply / demand imbalances and targeting sectors benefitting from societal shifts, Moorfield has, since 2019, assembled an eight-asset, 870,000 sq ft portfolio of single tenant warehouses on behalf of MREF IV, located in UK markets characterised by growing logistics occupier demand and strong or improving local infrastructure.

In Caterham, Surrey, Moorfield has acquired an 84,048 sq ft distribution warehouse, with an adjoining 3,500 sq ft roadside factory outlet, from Gold Group International Limited. The property is let to Ann Summers, on a 13 year lease, expiring in 2032, with the warehouse serving as its key UK distribution hub and global headquarters. Occupying a strategic location adjacent to the A22, which connects to Junction 6 of the M25 in under five minutes’ drive, the property is less than 20 miles from Central London.

In Gillingham, Kent, Moorfield has acquired two warehouses totaling 86,127 sq ft via a related party sale and leaseback transaction with Wozair Limited, the global heating, ventilation and air conditioning specialists. The tenant has agreed to lease back the units for 10-year terms. Located on Gillingham Business Park, one of the most sought after business locations in the region and home to a number of national and international occupiers, the property benefits from excellent road access, less than 2.5 miles from the M2 which provides fast access to the national motorway network via the M25 and to the Channel Tunnel, providing a natural extension to the thriving East London logistics market

In a third transaction Moorfield has acquired a 35,148 sq ft modern freehold warehouse in Newbury from a fund managed by OLIM Property Ltd. The unit is leased to Bunzl UK Ltd, a FTSE 100 wholesale distributor of cleaning and hygiene products, as well as PPE supplies, with 4 years until expiry. Newbury is positioned with access to the M4 motorway, connecting to London and other locations in the Midlands and the South West. The local council are undertaking a redevelopment programme for an adjacent industrial estate which is likely to put further pressure on supply levels in the local area.

Charles Ferguson-Davie, Chief Investment Officer of Moorfield Group, commented: “These acquisitions represent a rare opportunity to add three assets in sought after locations, all set to benefit from ongoing occupier and investor demand. We have identified several longer-term asset management opportunities to drive both rental and capital growth to complement the income return that the investments offer from the outset. The logistics sector has been a major beneficiary of the acceleration in e-commerce growth caused by Covid-19, and in line with our broader investment strategy of identifying sectors benefitting from societal shifts, we have ambitions to further our exposure in the sector.”

These acquisitions follow the recent announcement of Moorfield’s entry into the self storage sector with the launch of its strategic joint venture with a South African self storage Real Estate Investment Trust (REIT) and owner of leading UK self storage business Storage King. The joint venture aims to build an initial £50-100 million portfolio of modern, tech-enabled high-profile self storage assets in the UK.

Alongside investment in logistics and self storage, Moorfield is also continuing to invest in many ‘alternative’ and operational real estate subsectors, including in Build-to-Rent (through the More. platform) and other residential for rent strategies, student accommodation (through the Domain platform), nursing homes (via the relationship with Allegra Care), and retirement villages (through the Audley platform).

Moorfield were represented by ACRE on Caterham, DTRE on Gillingham and Savills on Newbury, with Womble Bond Dickinson providing legal advice on all three acquisitions.

Moorfield Group, a UK-focused real estate fund manager, has entered into a joint venture with Stor-Age, a South African self storage Real Estate Investment Trust (REIT) and owner of leading UK self storage business Storage King. The joint venture aims to build an initial £50-100 million portfolio of modern, tech-enabled high-profile self storage assets in the UK.

Moorfield will be the majority investor, on behalf of its Moorfield Real Estate Fund IV. The joint venture aims to develop self storage assets with a focus on London and the South East. The portfolio will benefit from being operated under the Storage King brand, which currently trades from a platform of 28 stores, providing over 1 million sq. ft. of high-quality storage space across the UK.

The joint venture is in advanced discussions on a number of acquisitions, leveraging Storage King’s established relationships and industry experience to secure off-market opportunities. The pipeline comprises a mix of subject-to-planning development sites, turn-key developments and existing investment assets.

The partnership with Stor-Age represents Moorfield’s entry into the estimated £800 million (annual turnover) UK self storage industry, which has been growing at approximately 6.5% p.a. since 2005(1) but which continues to be characterised by low penetration in key urban conurbations and a general lack of consumer awareness. Driven by ever-increasing levels of consumerism, densification and an upwardly mobile population, the product is also ideally positioned to continue servicing and supporting commercial customers as the structural shift from traditional bricks and mortar retail to online shopping takes place. Furthermore, the UK is substantially undersupplied at 0.73 sq. ft. per capita, which compares to 9.44 sq. ft. in the US(2), providing a cushion against the risk of oversupply. The sector has been one of the more resilient since the outbreak of the COVID-19 pandemic, with European rent collection rates outperforming logistics, retail and office(3).

The joint venture further extends Moorfield’s footprint in the real estate ‘alternatives’ space, which for many years has comprised investments in Build-to-Rent (More.), student accommodation (Domain) and retirement villages (Audley). More recently, Moorfield has entered the nursing and dementia care home sector with a £125 million partnership with Allegra Care and has invested in family homes through the acquisition and leaseback of a portfolio of show-homes from the housebuilder, Avant Homes.

Marc Gilbard, CEO of Moorfield Group, commented: “As a specialist alternative real estate investor with a track record of generating strong returns from the timely recognition and discerning exposure to sectors benefitting from changing demographic and societal change, the UK self storage sector is a natural fit for our investment portfolio. Replicating the strategy of our recent nursing and dementia care-home partnership, we have selected a best-in-class partner whose operational and origination expertise will enable us to both access the sector and then scale a portfolio in a meaningful way. Self storage as an asset class has been one of the more resilient during this period of uncertainty and is set to benefit from a number of favourable structural trends, and with a strong pipeline of assets already identified, we are excited to be launching this latest venture on behalf of our investors.”

­Steven Horton, Executive Director of Stor-Age, commented: “We are delighted to have formed a partnership with Moorfield in order to execute our strategic growth plans in the UK over the medium-term. The UK self storage industry presents a significant and attractive growth opportunity and we remain encouraged by the consistent performance of the Storage King business this year, despite the backdrop of uncertainty and a muted economic environment as a result of COVID-19. All properties will be branded and managed by Storage King as part of our third-party management platform, Management 1^st.”

(1) The Self Storage Association UK annual industry reports, 2005 – 2020

(2) The Self Storage Association UK annual industry report, 2020

(3) Federation of European Self Storage Association / JLL, Ninth annual survey

Allegra Care, the UK-focused care home operator, and Moorfield Group, a leading UK specialist real estate fund manager, have formed a partnership (the “Partnership”), with the aim to create an initial £125 million portfolio of modern, fit-for purpose nursing and dementia care homes.

Building on its expertise and track record in the ‘beds’ sector, Moorfield will initially be investing on behalf of Moorfield Real Estate Fund IV. Allegra Care will be responsible for originating and operating the assets and will also invest in the Partnership, which is targeting a portfolio of 15-20 homes over the medium term.

The Partnership will employ a strict investment criteria, targeting modern, fit-for-purpose homes with large communal areas, in demographically supported locations across Central and Southern England. The Partnership will seek to acquire both operational assets, including those offering asset management potential, alongside newly developed homes and is in advanced discussions on a number of acquisition opportunities.

The Partnership represents a major new entrant into the UK care home sector, which is valued at some £16.5bn(1) and is underpinned by long-term demographic demand: the number of people aged 85 or over in the UK forecast to double to 3 million in the next 25 years(2) and whilst the number of 75 year olds and above in the UK has increased by 10% since 2012, the number of elderly care beds has increased over the same period by just 1.5%(3). Alongside this, operators are seeking to develop high quality residents’ wellbeing solutions, as residents and their families are becoming increasingly discerning in looking for modern fit-for-purpose homes.

Founded in 2018, Allegra Care is a specialist care home operator and is owned by Seniors Living Group Ltd (SLG). Allegra Care’s CEO Helen Jones has developed an award-winning model of care which is at the heart of the business, based on her long track record operating in the care home sector, primarily in Australia. During her career in Australia she developed and operated over 90 care homes.

The Partnership represents an extension of Moorfield’s existing approach to innovation in the residential sector, where it currently invests in retirement living (Audley), Build-to-Rent (More.) and student accommodation (Domain). Earlier this year Moorfield entered the family home for rent sector with the acquisition of a portfolio of show homes leased back to UK housebuilder Avant Homes.

Commenting on the transaction Marc Gilbard, CEO of Moorfield Group, said: “The nursing home sector is a logical extension to our demographically driven investment strategy, as we look to build on our successful track record of investing at the early stages across the ‘beds’ sectors.

“The fundamentals for the UK’s elderly healthcare sector remain strong, and we expect the impact of the Covid-19 pandemic to be profound, accelerating the much needed delivery of fit-for-purpose homes, of which there is a chronic undersupply in the UK. Helen’s track record and experience in the mature Australian market means Allegra Care has the deep sector knowledge required at this unprecedented time. We look forward to Helen and the Allegra Care team using their experience and passion to deliver the level of service that is desperately needed.”

Helen Jones, CEO of Allegra Care, added: “We are excited to be partnering with Moorfield, which has an enviable track record of supporting the growth of businesses with a commitment to service quality.  With our model based on the core principles of the household model, resident and staff wellbeing, service quality and staff development, we are focused on delivering on our acquisition plan with Moorfield Group, and adding value to the homes and teams that become part of Allegra Care.”

Allegra Care was advised by CBRE and Farrer & Co. Moorfield Group was advised by Connell Consulting and Shoosmiths.

(1) Laing Buisson

(2) ONS, 2019

(3) ONS, 2019

Moorfield Group, the UK focused real estate fund manager, on behalf of Moorfield Real Estate Fund IV (MREF IV), has agreed a five year lease renewal with Geberit UK, the European leader in the field of sanitaryware, at its prime distribution warehouse in Alsager, near Crewe, North West England.

The modern property, which was acquired by Moorfield in 2018, features 10.2 metre clear heights, 11 dock loading doors, along with parking for 32 cars. Geberit, which employees 12,000 people in 50 countries, uses the 325,000 sq ft single-let warehouse as its sole national distribution centre in the UK and has occupied the site for a number of years.

Alsager, located between Crewe and Stoke-on-Trent, provides excellent connectivity via the UK motorway network, with Junction 16 of the M6 less than three miles away, whilst Crewe Railway Station, a major interchange on the West Coast Main Line is eight miles away and Manchester, Liverpool John Lennon and Birmingham International Airports are all within an 80 minute drive time. Reflecting its strategic importance as a logistics hub, a number of national and international occupiers have distribution facilities in the immediate area.

Hugh Canham, Senior Asset Manager at Moorfield, commented: “Having identified the property’s reversionary potential on acquisition, this lease renewal is a significant asset management achievement, reflecting both our pan-UK local market expertise and deep occupier relationships. This is a prime asset let to an extremely strong covenant, in a sector that continues to demonstrate robust performance during this highly volatile period. We remain committed to delivering on our strategy, which is centered on identifying real estate supply / demand imbalances and targeting sectors benefitting from societal shifts, as we look to progress our growth ambitions.”

Moorfield Group, the UK real estate fund manager, has committed to being operationally net zero carbon by 2030. It represents the latest and most signficant phase of Moorfield’s long standing sustainability strategy, which incorporates all the relevant Environmental, Social and Governance (“ESG”) aspects of its operations and reflects the critical role that the real estate industry has to play in mitigating climate change.

Moorfield’s environmental vision is to eliminate carbon emissions under its control across its investment portfolio, including through working with third parties, by sustainably designing, constructing, operating and investing in net zero-ready buildings. As part of its pathway to being net zero carbon, the Company has already set a number of initial energy & climate targets, including:

• 100% of electricity to be sourced from renewables by 2030, where contracts are under its control
• Develop an implementation plan for solar PV rollout on all viable roof spaces by 2022
• Obtain or estimate tenant energy consumption for >90% of tenancies by 2022
• Create climate change adaptation & resilience plans for every asset including physical climate change risk analysis and remediation strategy for all sites by 2025

Moorfield aims to realise its commitments, which align with the Greenhouse Gas Protocol emissions scopes*, by utilising an Environmental Management System, which is aligned with the International Standards Organisation 14001 standard, an internationally recognised approach to environmental management. This system will enable Moorfield to implement net zero roadmaps which outline energy efficiency actions for each asset alongside its broader ESG targets covering waste management, supply chain management, tenant engagement, employee development, sustainable construction and building operations, green building certifications, green leases, materials selection and community involvement.

Sadie Malim, Head of Special Projects at Moorfield Group, commented: “This commitment is a continuation of our sustainability agenda, which sits at the very core of Moorfield’s ambitions. Since 2016 we have reduced our like-for-like emissions by 37% and our energy consumption by 8%. In addition, all our operational investments either already have, or are in the process of procuring green energy contracts, products and services that are carefully evaluated to meet a specified sustainability criteria.

“The progress we have made so far has emboldened us to commit to a net zero carbon by 2030 strategy and we are confident that our Funds are ready for the challenge. We look forward to reporting on our progress in achieving these targets.”

Marc Gilbard, CEO of Moorfield Group, added: “I believe that current events will hasten the trend taking place within the real estate industry of wanting to have more of a positive social and environmental impact, something Moorfield has been advocating for many years. The real estate industry must take its place in the global climate conversation and be both responsible and proactive. By working with our occupiers, suppliers, communities and industry peers, Moorfield is determined to demonstrate the synergies possible through delivering excellence in sustainability alongside professional real estate management.”

Moorfield Group, the UK real estate fund manager, is pleased to announce the appointment of Jane Hollinshead as a Non-Executive Director.

Jane has over 20 years’ experience advising public and private companies and not-for-profit organisations on a range of commercial and residential real estate issues. She is currently Principal and founder of IJD Consulting, which was established to provide advice on external advisor strategies and change management processes to REITS, professional services firms and real estate industry organisations, including British Land, Knight Frank, Savills and the British Property Federation. She previously spent 18 years at law firm Addleshaw Goddard as a Partner, Real Estate Sector Head and a member of the Governance Board.

Jane has significant Board level experience. She is currently Non-Executive Director of Notting Hill Genesis Housing Association, where she is Chair of its Operations Committee and a member of its Nominations and Remuneration Committees. She is also a Board member of Pathways to Property, an initiative focused on increasing social mobility within the real estate industry, led by RREF, Henley Business School and supported by the Sutton Trust.  Since January 2019, Jane has been a Diversity & Inclusion Consultant to Knight Frank and has previously provided diversity and Inclusion advice to the British Property Federation.

Marc Gilbard, CEO of Moorfield Group, commented: “Jane has enjoyed a distinguished career in the real estate sector, advising some of the UK’s leading businesses and with her significant Board experience will provide invaluable insight and guidance as Moorfield continues to progress. In particular, as we focus on expanding our footprint across the residential (and related) sectors and delivering on our ESG pathway, her skill and experience will be hugely beneficial.”

Jane Hollinshead added: “Over more than 20 years, Moorfield has forged a reputation as one of the UK’s most successful and innovative real estate businesses. I am excited by the strategic direction of the business and look forward to supporting the team during this next stage of growth.”

Moorfield Group, the UK real estate private equity fund manager, is pleased to announce that its Duet BTR scheme in MediaCityUK, Manchester, achieved the highest-rated residential building in the UK with an overall score of 4.87 out of 5 according to resident reviews on independent review platform HomeViews. Duet, which was launched in Autumn 2019, was rated highly on its design, facilities, location and management. This is the second year running that a More. Superenting BTR scheme has held the pole position.

Duet offers residents a range of one, two and three-bedroom apartments and is located within the city’s MediaCityUK district. As well as being home to the BBC and ITV, the area’s local amenities include 15 bars and restaurants, four shopping outlets, six leisure facilities, a cinema, a theatre and a nursery, earning the building an impressive location score of 4.95.

All apartments are pet-friendly, and this, combined with the private gym, residents’ lounge and coworking space earned the building a 4.9 rating for facilities. Similarly, residents rated the 24-hour concierge, resident services and security teams a near-perfect 4.95 for building management.

“Huge congratulations to the More. ‘Superenting’ team, Moorfield and Allsop Letting and Management for such an outstanding achievement,” commented Rory Cramer, CEO and co-founder of HomeViews. “Duet has already established itself as an exemplary build to rent scheme in the UK in terms of its design, construction and ongoing management – a credit to all involved.”

A joint architecture/interiors team from architects Sheppard Robson was responsible for Duet’s design.

Duet is one of real estate private equity fund manager Moorfield’s three award-winning More. ‘Superenting’ developments, including The Trilogy in Manchester and The Forge in Newcastle.

Marc Gilbard, CEO of Moorfield Group, commented:

“We’re really proud that Duet has been named the UK’s best residential building by our residents. When we entered the build to rent market, we put an enormous amount of thought and time into building the brand standards we wanted our schemes to be designed and operated to, always with a hospitality led approach.

“The teams at Glenbrook and Allsop have been instrumental in helping us bring this to fruition through their respective detail focused development and operational management. The recognition that Moorfield is now receiving in the build to rent sector is a reflection of the time we have spent providing high quality homes across the age and stage spectrum, from student accommodation through to retirement living. This exciting evolution of residential provision will continue to be a key focus of ours.”

-Transaction broadens Moorfield’s deep UK residential exposure and establishes strategic partnership with Avant Homes –

Moorfield Group, the UK real estate private equity fund manager acting on behalf of Moorfield Real Estate Fund IV (MREF IV), has acquired a 93,000 sq ft, 77 show home portfolio from privately-owned housebuilder Avant Homes for £20 million.

Located across the UK, the show homes have been immediately leased back to Avant Homes on an average three-year term. On expiry of the individual leases, Moorfield will either sell the homes on the open market, leveraging Avant Homes’ sales channels, or rent the homes to complement its existing build-to-rent activities.

The investment, one of the largest ever of its type in the UK, is in line with Moorfield’s strategy of identifying real estate which offers a strong income stream that is either immediate or can be generated from their expertise, in those sectors where there is an underlying supply/demand imbalance. The acquisition is a further example of Moorfield’s innovation in the residential sector where it currently invests in senior living (Audley), Build-to-Rent (More. Superenting) and student accommodation (Domain).

Moorfield Group and Avant Homes have previously worked together, with the former acquiring the developer’s Edinburgh city centre £750 million mixed-use Quartermile scheme in 2013 for an undisclosed sum. Both parties see this latest deal as paving the way for further strategic partnerships.

Charles Ferguson-Davie, chief investment officer of Moorfield Group, said: “Despite the volatility caused by the COVID-19 pandemic, we remain convinced that the residential sector will continue to be a resilient asset class, providing ongoing opportunities to generate outperformance on behalf of our investors. We have pioneered investment into a range of residential use classes and this innovative transaction provides our investors with further diversification.”

Ross Netherway, Head of Origination at Moorfield Group, added: “Through this investment we are cementing our relationship with one of the UK’s most dynamic and ambitious housebuilders. It is the first of what we hope will be a number of similar investments, assisting housebuilders that are seeking alternative ways to accelerate the delivery of new housing for sale and for rent across the UK.”

The portfolio’s two, three, four and five-bedroom detached and semi-detached show homes benefit from the developer’s design-led approach and commitment to outstanding levels of specification. This gives the properties distinctive open plan configurations and a variety and quality of specification that sets the homes apart.

Currently operating in Scotland, north east England, Yorkshire and the Midlands, Avant Homes has a turnover of £483 million, employs around 780 people and is committed to achieving further continued growth.

Avant Homes Chief Operating Officer, Mark Mitchell, commented: “This is an excellent transaction for both businesses. We are very pleased to be working with Moorfield Group, having begun discussions at the start of this year.

“COVID-19 has presented the housebuilding industry with many challenges, which we have responded to dynamically, with the safety and wellbeing of our people as our first priority. Looking ahead, we remain committed to continuing to execute against our growth strategy, underpinned by the resilience and agility of our business, the excellence of our product and the commitment of our people.

“Moorfield Group’s investment is testament to their belief in our ability to continue to succeed. As part of our growth strategy, we are exploring a number of other opportunities with Moorfield Group and hope to be able to reveal more detail about what they are in due course.”

Moorfield Group was advised on the transaction by Cushman & Wakefield and Shoosmiths.

-Major Build to Rent scheme supports local charity creating a greener Greater Manchester- 

-270 trees to be planted for each resident of Moorfield Group’s Duet Salford Quays- 

-More than 36 tonnes of carbon will be captured by the trees- 

Greater Manchester is set to become greener, as nearly 300 trees are planted at Duet Salford Quays (“Duet”), a recently launched More. Build to Rent (“BTR”) development spanning two towers in MediaCityUK. One tree will be planted for each of the 270 residents as they move into the building, which will both help  offset carbon and help re-invigorate Greater Manchester’s landscape. Duet was delivered by Moorfield Group, the UK real estate private equity manager which has signed up to the City of Trees initiative through its More. ‘Superenting’ brand.  

Each tree planted will capture an estimated 135kg of carbon over a 30-year period in Greater Manchester, providing a substantial contribution to the preservation of the local environment. 

As each resident moves into Duet, they will be presented with a City of Trees certificate and keyring to remind them of the positive work and contribution that has been made to making Greater Manchester greener on their behalf. 

The planting is being done in partnership with tree planting movement, City of Trees, which aims to help Greater Manchester become a greener place and contribute to the region becoming carbon neutral by 2038. To date, the initiative has seen over 459,929 trees planted across the City.  

City of Trees believes that trees are an essential tool in addressing the current climate emergency and therefore specialise in looking at ways in which trees can be used to adapt urban areas making them more resilient to a range of environmental challenges including air quality, flood risk and extreme heat.   

Dougie Orton-Wade, General Manager at Duet Salford Quays, commented: “The City of Trees movement makes a fantastic contribution to helping create a greener Greater Manchester. The reason we decided to pledge to this movement was to give something back to the community in which our residents call home. We couldn’t think of a better way to do this than to plant and help conserve green spaces and contribute towards improving air quality in the region, for current and future generations to benefit from.  

“As our community here at Duet continues to grow, we will endeavour to support further green initiatives which will allow us to give back to the community and improve life in Greater Manchester.” 

Duet is a new More. Build to Rent development of 270 premium apartments located in MediaCityUK. At 15 storeys tall, it is the latest addition to the city’s skyline. It was delivered by Moorfield Group on behalf of funds under management, working with developer Glenbrook Property, and is professionally managed by specialist rental operator, Allsop.  

Duet is the most recent More. BTR scheme delivered by Moorfield, following The Trilogy on Ellesmere Street, which opened in April 2019 and is now fully occupied and The Forge in Newcastle, which opened in September 2018. 

-FTSE 100 Sage recently agreed a long term lease as part of its new headquarters, the largest ever letting in the North East office market-

Moorfield, the UK real estate private equity fund manager acting on behalf of Moorfield Real Estate Fund IV (MREF IV), and Highbridge Properties, a leading UK commercial developer, have completed the sale of the Zeta building, a 125,912 sq ft Grade-A office building on Cobalt Park, the UK’s largest business park located in Newcastle upon Tyne, for £25 million. The building was recently let to The Sage Group plc, the UK’s largest technology company.

Originally known as Cobalt 23, the property was acquired by MREFIV and Highbridge Properties in 2017, following which they undertook a repositioning of the asset, with improved landscaping and a rebranding as the Zeta building. The modern, Grade-A building provides 125,912 sq ft arranged over ground and four upper floors and benefits from strong sustainability credentials, being rated BREEAM ‘Very Good’.

Representing the largest ever letting in the North East office market, in December 2019 Sage agreed new leases for 203,728 sq ft across two adjacent buildings, Cobalt 22 & the Zeta building, on the park. Sage is currently investing in a complete re-fit for what will be its UK headquarters, to provide a world class office experience for employees, customers and partners.

Charles Ferguson-Davie, Chief Investment Officer of Moorfield Group, added:

“This investment has performed well for our investors with an earlier than anticipated sale. We saw this as an opportunity to reposition the property, taking advantage of the supply and demand imbalance for high quality offices in the area, and the attractions of Cobalt Park, to meet the needs of occupiers.

“It marks the team’s latest success for our UK office strategy, which has seen us acquire, refurbish, lease and then dispose of some 3 million sq ft, or £1bn, of office space in London, Manchester, Birmingham, Leeds, Newcastle, Glasgow and Edinburgh.”

Guy Marsden, director of Highbridge Properties, developers and part-owners of Cobalt Park, said:

“We identified Sage as an occupier for the space and worked with Moorfield to relocate Sage to Cobalt. Cobalt Park is the largest office park in the UK, employing over 14,000 people and benefiting from excellent local infrastructure. Providing 1,618,000 sq ft of high-quality office space in a 250-acre parkland setting, it is home to a world class occupier base including P&G, Accenture, Sage, IBM, Santander, EE, Siemens, Leeds Building Society and the NHS.”

Moorfield and Highbridge were advised on the transaction by ACRE Capital Real Estate.

Leading marine technology and aquaculture company OTAQ Group has agreed a five-year lease for 4,434 sq ft of space at Crombie Lodge, on Moorfield Group’s Aberdeen Innovation Park, for its new business base. 

Crombie Lodge is currently undergoing a comprehensive reconfiguration and refurbishment programme to deliver 12,000 sq ft of Grade A standard commercial space. OTAQ is the second tenant to take space in the building, following on from systems integration specialist Servalec Controls, which agreed a 6,000 sq ft letting in late 2019.  

The new space has been refurbished to OTAQ’s specification and consists of office and meeting accommodation, along with dedicated storage, laboratory and engineering space, with roller shutter doors. 

The company is upsizing from a small suite in the neighbouring James Gregory Centre as part of its ongoing expansion programme, which has included the acquisition and integration of Link Subsea into the group.  

The new office will initially accommodate eight staff, with OTAQ looking to recruit additional engineering and business development staff from this April.  

Chris Hyde, OTAQ’s Chief Commercial Officer, said: “Our business is developing rapidly and we needed more substantial space to facilitate our expansion programme.  

“We reviewed a number of locations in the area before making our decision. Crombie Lodge offers an outstanding location and provides our staff with a superb sustainable working environment, along with generous car parking space.” 

“In concluding this deal, we were impressed by the can-do and flexible approach of Moorfield, which enabled us to secure quality space, designed for our business needs.” 

Hugh Canham from Moorfield Group (on behalf of the parks’ owner, Moorfield Real Estate Fund III) said: “We’ve worked closely with OTAQ on the refurbishment programme and Crombie Lodge will give the company the ideal base to grow and develop. 

“Only three units totalling circa 3,000 sq ft remain available at Crombie Lodge and it is clear that our sustainable refurbishment programme is proving popular with occupiers in the area.” 

The programme of works at Crombie Lodge, which is being managed by Aberdeen-based architect Cooper & MacGregor, will be completed to Grade A standard and includes upgrades to the building exterior, along with the reconfiguration of the entire building, including reception and shared areas. The development will incorporate the best achievable sustainability and environment standards. Works are currently making good progress, with completion scheduled for this spring. 

Commenting on the market, Daniel Stalker from Ryden added: “Positive sentiment is now evident in the north east property market. Occupier demand remains strong for high quality, refurbished office space in strategic locations like Bridge of Don and we anticipate that this will continue for the remainder of 2020.” 

Knight Frank and Ryden are joint agents for Aberdeen Energy & Innovation Parks. 

Please download our January 2020 Newsletter to read our latest news

Moorfield, a leading UK real estate private equity fund manager, announces that it has sold a logistics unit in Huddersfield, West Yorkshire, to W.P. Carey Inc, for £29 million on behalf of Moorfield Real Estate Fund III (MREFIII).

The 385,000 sq ft freehold property is let in its entirety to Poundstretcher Ltd following a 25 year lease re-gear in December 2017. The building was subsequently sub-let to Buy It Direct Ltd in 2019, one of the largest online retailers in the UK, on a 10 year sub-lease. The asset was acquired by Moorfield in April 2017 alongside another logistics unit in Huddersfield.

The disposal of the national distribution facility is the final logistics investment to be sold from MREFIII. A portfolio of five assets were sold together in May 2018 for £42.5m to an institutional investor.

Charles Ferguson-Davie, Chief Investment Officer at Moorfield Group, commented:

““We established the Moorfield Logistics Partnership within MREFIII to target logistics units with lot sizes of £5-20 million and with short to medium term lease lengths.

“This was the last remaining logistics asset in MREFIII and the sale has realised another successful investment in the logistics sector for Moorfield.

“We are currently looking to invest in new logistics opportunities on behalf of Moorfield Real Estate Fund IV (MREFIV) in order to create a new Moorfield Logistics Partnership (MLP) portfolio. So far we have acquired four units, comprising c.700,000 sq ft, with a desire to do more in 2020.”

MLP was represented by Savills and the purchaser by Avison Young.

Moorfield, a leading UK real estate private equity fund manager, today announces that Injoy, one of the UK’s leading children’s activity centre operators, has taken the final unit at Derby Riverlights (“Riverlights”) for its latest £1.7 million play centre. Riverlights is a waterfront leisure destination in the heart of Derby owned by funds managed by Moorfield.

Injoy, which has taken 20,000 sq ft of space, over two floors on an 15 year lease, is the latest established brand to occupy Riverlights, further strengthening the diverse mix of leisure, hospitality and F & B tenants across the 200,000 sq ft scheme.

Riverlights will be Injoy’s second UK centre, providing a host of fun activities for all the family under one roof, including climbing walls, soft play and one of the UK’s first ‘Interactive Zones’, where families can test their skills at art workshops and cookery classes. It will also offer a plastic-free licensed restaurant and free Wi-Fi throughout.

Nic Lowry, Senior Investment Manager at Moorfield, commented: “Welcoming Injoy is the final piece of the jigsaw in positioning Riverlights as the key leisure destination in the city centre. Providing a thriving leisure sector is a vital element in the ongoing regeneration of the City and we are thrilled that Riverlights is now fully occupied, supporting both our original investment strategy and Derby’s vision in rediscovering the riverside focused offering.”

John Forkin, Managing Director of Marketing Derby, said: “This is great news for Riverlights. We have been working together with Moorfield to support its investment and we are pleased that the scheme is now fully let. With further investment ongoing at the River Gardens, Derby is finally beginning to take advantage of a wonderful river frontage.”

Injoy Manager Richard Chandler added: “We have taken the original concept for a soft play centre and taken it to another level with a genuine emphasis on quality, creating an environment the whole family can enjoy together.”

As part of the ongoing asset management programme at Riverlights, an outside terrace overlooking the River Derwent will be created in time for the summer months.

Located adjacent to the River Derwent, existing leisure occupiers at Derby Riverlights include Genting Casino, Holiday Inn, Premier Inn, Thyme Restaurant and Gym City. Originally constructed in 2010, Riverlights was acquired by Moorfield in 2015 out of administration, since when it has undertaken a transformational redevelopment programme.

-Follows opening of latest 270-apartment Manchester scheme this week-

 Moorfield, the UK real estate private equity fund manager, has launched its Build to Rent (“BTR”) brand, More. to consolidate its extensive expertise within the sector into a distinct platform. Moorfield has developed and operated 1,200 BTR apartments since 2012 and intends to continue investing in the sector through the new More. platform. The most recent scheme to launch is Duet, in Salford Quays, adjacent to MediaCityUK and offering 270 apartments.

More. will complement Moorfield’s activities in the student accommodation sector, where 6,800 beds have been delivered under the Domain platform since 1998, and in the senior living sector, where Moorfield has been an investor since 2008 through Audley, which now has 2,000 units in its platform.

Moorfield will continue to promote schemes with strong local brand names, using the successful ‘Superenting’ campaign, to appeal to local customers. More. will be the umbrella brand for all Moorfield’s BTR activities to consolidate and help it communicate its overall sector activities to its stakeholders in the business community.

The More. brand will initially comprise three schemes, totalling 785 apartments: Duet and The Trilogy in Manchester and The Forge in Newcastle. They provide a mix of one, two and three bedroom apartments, fully kitted out with state-of-the-art appliances and designed to optimise space with market leading on-site amenities, including extensive shared resident facilities specifically curated to support co-working, wellness and socialising. Each scheme also benefits from ultrafast fibre broadband, strong transport links and a wide range of local amenities in close proximity.

All More. residents have access to on-site concierge teams, dedicated cycle storage, automated parcel lockers, electronic key security software for authorised visitors and a residents’ app designed to allow hassle free reporting of maintenance issues. Residents can also take advantage of residents only social events including movies nights, homework evenings, gaming or dinner parties.

Sadie Malim, Head of Special Projects at Moorfield Group, said: “The More. branding encapsulates the work we have done to date across all the BTR schemes we manage to build rental offerings for the modern ‘Superenter’. Our brand standards ensure that each scheme is designed both aesthetically and technically to appeal to the discerning and tech savvy customer with a strong focus on community and engagement.

“We have been investors in “beds” since entering the PBSA market in 1998 and have consistently led the market in identifying the needs of customers across the residential spectrum and innovating to fill the gaps. The More. brand will help us communicate our experience and intentions in the BTR sector, one where we have significant near-term growth ambitions.

“Duet is our second BTR scheme in the Manchester area and we are excited to welcome our first customers this week.”

Duet is located adjacent to the bustling MediaCityUK, which is home to the BBC, ITV, University of Salford and more than 250 smaller creative and digital businesses, in a prominent position on the waterfront in Salford Quays, Manchester. Residents at the scheme will benefit from direct access to Harbour City station, which connects to the Manchester Metrolink system, as well as the strong existing local amenities near the site including 15 bars/restaurants, four shopping outlets, six leisure facilities, a cinema, a theatre, and a nursery.

The other BTR schemes operating under the More. brand are The Forge (Newcastle), which launched in November 2018, and The Trilogy (Manchester), launched in April this year and which is close to fully let.

Heiko Figge, Head of Operational Asset Management at Moorfield Group, commented:

“We’re excited to now have over 500 BTR units operational in Manchester. With The Trilogy almost fully let less than seven months after opening, we are confident that Duet will also let up swiftly. The scheme is perfectly located to benefit from the growing prominence of MediaCityUK as a hub of technology, innovation and creativity, with over 200 businesses now calling it home.”

All More. schemes are operated by Allsop Letting and Management. For further information, please visit https://more.superenting.co.uk/

Moorfield Group Limited are asset managers of the More. schemes listed, which are owned by special purpose vehicles in MREF III or MREF IV, both of which are Funds backed by international institutional investors and which are managed by Moorfield Group Limited or affiliates.

Moorfield Foundation, the charitable arm of UK real estate private equity fund manager Moorfield Group, is pleased to announce the acquisition of a residential property in Manchester, which has been leased to Bridge-It Housing, a registered landlord and charity which provides temporary housing for homeless people. It represents the Moorfield Foundation’s first dedicated social impact investment, a key tenet within its increasingly prominent Corporate Social Responsibility (CSR) programme.

Located in Clayton, a suburb three miles east of Manchester’s city centre, the property is now providing a home to four otherwise homeless people. Bricks & Soul, Moorfield’s local Manchester partner who focus on bringing empty homes back into use with full and inspiring refurbishment methods, using local tradespeople and products, were responsible for finding, refurbishing and delivering the property.

Bridge-It Housing works with a wide range of people who find themselves suddenly without a permanent home for a number of different reasons – often loss of employment, relationship breakdown or refugee status. The charity also provides additional support through counselling, life skills training, CV assistance and employment search support, with a view to moving the residents into permanent social housing. In the last year it has provided support to over 1000 people through its various initiatives.

Sadie Malim, Head of Special Projects at Moorfield Group, commented: “Our first social impact investment in Manchester, supporting a charity which is providing much needed services and support to those at risk of homelessness, is a significant milestone. We have invested in Manchester for many years and we are excited to showcase how we plan to invest in social projects that support our values in those cities where we are commercially active.

“This investment also represents the first step towards creating a more sustainable Charitable Foundation that progresses beyond a simple donations model and which we aspire to build into a meaningful long-term foundation.

“We loved the work that Tors Sinclair at Bricks & Soul was doing in Manchester to bring unloved terraced houses back to life through community focused refurbishment projects. We shared a common belief that all homes should be inspiring and uplifting spaces and in particular our aim was deliver such homes for the exclusive use of charitable housing providers.”

One of the Bridge-it clients stated: “I have been living in the Clayton house for 5 months and I’m absolutely in love with it. It is a 5-star house for me, we have all the facilities we need and the decoration is amazing. This house is better than the house I grew up in, I am so thankful to Bridge-it Housing for their help.”

The Clayton Street investment is the latest milestone for Moorfield in its CSR roadmap. Having created its first Sustainability Statement and Action Framework in 2009 and established a Sustainability Committee in 2015, published its third annual Corporate Sustainability Report outlining the progress made across the business in 2018, with highlights including:

• Reduced energy consumption across its portfolio by 13%, exceeding its longer term target of a 12% reduction from 2016 to 2020.
• Reduced scope 1 and scope 2 greenhouse gas emissions by 63% in absolute terms and 38% on a like for like basis across MREFIII and MREFIV funds, when compared to the 2016 base year.
• Increased its recycling performance to 61% at monitored properties.

Fully let to a mix of domestic and international students-

Moorfield, a leading boutique UK real estate private equity fund manager, on behalf of Moorfield Real Estate Fund IV, announces the practical completion of Toybox, the latest purpose built student accommodation (“PBSA”) development it has delivered in the UK.

The forward funded 290 bed scheme, in central Birmingham, was developed by the Torsion Group, a privately-owned independent development and construction company covering the student accommodation, care to residential and housing sectors.

Comprising 151 studio apartments and 139 en-suite cluster bedrooms spread across a 15 storey building, Toybox boasts best in class amenities including stylish communal spaces designed to optimize effective studying. Students moving in will also have access to a fully equipped onsite gym and wellness studio, a private courtyard garden, automated parcel lockers and ultrafast fibre optic Wi-Fi. The property is already 100% let for the beginning of the 2019/2020 academic year.

Located on Bishopsgate Street in the city centre, Toybox is close to all of the four major Birmingham Universities, collectively home to over 79,000* students. The City’s main shopping district, including the Bullring shopping centre, as well as a range of popular student bars and restaurants are located within a 15-minute walk, with a wide range of leisure facilities and amenities also in proximity.

Charles Ferguson-Davie, CIO at Moorfield Group, commented: “As one of the pioneers in the PBSA sector and an active current investor, we have been able to use our experiences from previous projects, including Hox Park, which services Royal Holloway University and opened last year. This ensured we delivered a scheme that is of a high-quality with impeccable interior design and stylish communal facilities focused on enhancing the students’ university experience as well as support their wellbeing.

“The letting success at the Toybox reinforces our belief that a British university education continues to be of particular appeal to overseas students, who expect more from their university experience than ever before – and the quality of their accommodation plays a major role in that experience.”

Moorfield started investing in the student accommodation sector in 1998, in response to the significant gap in the market for affordable student accommodation. Since then, the company has developed and managed over 6,000 student accommodation beds across the UK, including Printworks in Exeter and Century Sq. in Sheffield.

*  https://www.hesa.ac.uk/data-and-analysis/students/table-1

-Targeting UK portfolio in excess of 1 million sq ft by end of 2020-

 Moorfield, a leading boutique UK real estate private equity fund manager, on behalf of Moorfield Real Estate Fund IV (MREF IV), announces that it has acquired two logistics assets, in separate transactions, for £14 million, reflecting a blended net initial yield of 7.7%.

Having successfully executed a logistics investment strategy for MREFIII, Moorfield is now rebuilding a portfolio for MREFIV with a target of investing in locations set to benefit from population increases and infrastructure improvements. Moorfield’s strategy is to identify real estate supply / demand imbalances and is targeting sectors benefitting from societal shifts. Logistics continues to benefit from the growth of online retailing and the strategy sits alongside a focus on student accommodation, Build to Rent and senior living.

In Milton Keynes, Moorfield has acquired a 129,076 sq ft warehouse from Aberdeen Standard Investments. The property is let off a reversionary rent to Bong UK Limited, one of Europe’s largest producers of speciality packaging and envelopes, on a 12 year lease with 6.5 years remaining, and serves as its UK headquarters.  Milton Keynes is the key South East and M1 corridor distribution location, midway between the UK’s two most populous cites, London and Birmingham.

Milton Keynes is also located in the middle of the Oxford–Cambridge growth corridor; an area undergoing substantial economic and population growth. This and the associated infrastructure improvements are expected to translate into longer-term increases in land values and industrial requirements in the region.

In a second transaction, Moorfield has purchased, via sale and leaseback, a single-let 111,000 sq ft distribution warehouse in Felixstowe, from Indo European Foods. A new 20 year lease has been agreed with the tenant, one of the UK’s largest suppliers of rice, who has occupied the site for 15 years.

Felixstowe has a favorable supply / demand dynamic with almost no vacancy. Its appeal as a logistics hub is growing, due to its close proximity to London and lower congestion, labour costs and rents. Adjoining the Port of Felixstowe, the United Kingdom’s busiest container port which is set to benefit from existing and future investment, the property is less than half a mile from the A14, which connects Felixstowe to the national motorway network.

Charles Ferguson-Davie, Chief Investment Officer at Moorfield Group, commented: “These acquisitions fit with our investment strategy of acquiring c. £5m-£15m, single-let logistics assets in undersupplied locations, which offer significant reversionary potential through a range of asset management initiatives. Our ambition is to build a portfolio in excess of 1 million sq ft of logistics assets by the end of 2020.”

Moorfield was represented by Fineman Ross and WBD in both transactions. Knight Frank acted for Aberdeen Standard Investments on Milton Keynes and CBRE acted for Indo European Foods on Felixstowe.

Leading UK commercial developer Highbridge Properties, and Moorfield, the UK real estate private equity fund manager, have secured Sage, the UK’s largest technology company, as a new tenant at Cobalt 23, at Cobalt Business Park, Newcastle upon Tyne.

Representing the largest letting in the North East office market, Sage has agreed new leases on 203,728 sq ft, across two adjacent buildings, Cobalt 22 and 23, the latter of which is also known as the Zeta building, and was acquired by Highbridge Properties and funds under management by Moorfield in 2017. Sage has agreed a 15 year lease with a 10-year break clause on Cobalt 23.  Sage will invest in a complete re-fit, providing a world class office experience for employees, customers and partners.

Sage will move its flagship offices from Great North Park, Newcastle upon Tyne, where it located to in 2003, to Cobalt Business Park in 2020. Circa 2000 Sage colleagues and all new hires will benefit from the newly refurbished technology hub.

Guy Marsden, director of Highbridge Properties, developers and part-owners of Cobalt Park, said: “This letting is a massive endorsement of the quality and strength of the Cobalt brand.  We are pleased to secure the letting of such a high-profile employer and the benefits this will bring to the Newcastle region.”

Charles Ferguson Davie, Chief Investment Officer of Moorfield Group, added:

“We identified this building, in partnership with Highbridge, as an opportunity to provide high quality office space in a desirable location and that is benefitting from substantial local infrastructure improvement.  The decision by Sage to relocate its office to Cobalt Park supports the original strategy and will encourage continued growth in the area.”

Highbridge’s Cobalt Park is the largest office park in the UK.  It employs over 14,000 people and is home to numerous global brands including Accenture, Siemens, DXC and Proctor & Gamble.

Aidan Baker from BNP Paribas Real Estate added: “The letting of Cobalt 22 and 23 is   hugely significant for Cobalt Park, not only is the deal the largest out of town letting ever recorded in the north east market, but marks the disposal of the final new fully fitted building on site in Cobalt 23. These lettings will return occupancy on the whole of Cobalt Park to 87% and continues to illustrate the demand for high quality sustainable office buildings with excellent amenities and car parking.”

Highbridge and Moorfield were advised on the transaction by Aidan Baker at BNP Paribas Real Estate and Alex Hailey at CBRE.

Moorfield, the UK real estate private equity fund manager, on behalf of Moorfield Real Estate Fund III (MREFIII), has sold Atlantic Quay 2 for £22.25 million to Corum XL, the French real estate investment company.

Atlantic Quay 2 is an office building at the centre of Glasgow’s International Financial Services District and comprises 77,273 sq ft of prime office space and 28 underground car parking spaces and is fully let to Lloyds Banking Group.

MREFIII acquired Atlantic Quay 1, 2 and 3, which in total encompassed 280,000 sq ft of office space, in September 2015 for c.£60 million, reflecting an initial yield of 8.5 per cent. Atlantic Quay 1 and 3 were refurbished to a ‘Grade A’ specification with new occupiers including long-term leases with the Scottish Courts and Tribunals Service and the Department of Works and Pensions. Moorfield partnered with Resonance Capital to manage and refurbish the buildings, delivering excellence-in-design and an attractive customer service offering.

Atlantic Quay 3 was sold to LGIM Real Assets (Legal & General) in January 2018 and Atlantic Quay 1 was sold to the Bank of London and the Middle East in October 2018.

Commenting on the disposal on behalf of MREFIII, Charles Ferguson-Davie, Chief Investment Officer, Moorfield, said: “We identified the Atlantic Quay buildings as prime offices at the heart of Glasgow’s International Financial Services District, in a prime riverside location and in an office-market starved of new space. They were ready for refurbishment and we are proud to have developed such a successful scheme with Resonance Capital. With the sale of Atlantic Quay 2 we have now disposed of all three buildings for c.£130 million, well ahead of the expected business plan timeframe and delivering above target returns for the investors in MREFIII.

“We have been actively selling assets from MREFIII and have sold c.£450m of properties in the last 18 months which has delivered strong returns for our investors.

“We are presently looking for new opportunities for our most recent fund, Moorfield Real Estate Fund IV. We will continue to invest in the ‘traditional’ office, retail and industrial sectors, where there are opportunities for an improvement in the location due to infrastructure investment and where we can bring to bear our experience and abilities to reposition and improve an asset.

“We will also remain focused on the ‘alternative’ sectors, especially Build to Rent, Student Accommodation and Senior Living, where we have been early investors and have accumulated a great deal of experience and knowledge. We believe that demographics and supply/demand imbalances mean that these new, emerging sectors, can offer a defensive risk profile as well as attractive growth prospects.”

The entire Atlantic Quay area comprises a unique office complex that fronts the River Clyde. It is just a short walk from Glasgow’s main shopping, leisure and entertainment districts and accessible to all major road, rail, air and bus links.

On the sale of Atlantic Quay 2 MREFIII was represented by JLL and Corum XL by Danesborough Properties.

Please download our February 2019 Newsletter to read our latest news

We are pleased to have sold the Aurora office building in Ealing on behalf of MREFIII having achieved our business plan earlier than expected. Aurora comprises c.50,000 sq ft of grade A office space and new leases at record rents for the area were recently agreed with Spaces (Regus) and Synchronoss following a complete refurbishment carried out in partnership with XLB.

We acquired a number of assets in MREF III, including Aurora, to take advantage of major infrastructure improvements such as Crossrail and this will remain a theme for MREFIV, our latest fund that is looking for new opportunities. The other themes for MREFIV include residential Build to Rent (BTR), student accommodation, logistics and mixed-use projects.

Moorfield Group, the UK real estate private equity fund manager, has secured two new tenants at Aurora, the fully refurbished and striking office building in Ealing, London. The building comprises 53,000 sq ft of Grade A, contemporary and design-led office space.

IWG, who own Regus, has signed a 15-year lease on 28,684 sq ft across ground, first and second floors for Spaces, their co-working offer. This will be the workspace provider’s twenty third Spaces business club in the UK and it’s fourth in West London.

Synchronoss, a global leader in secure, white label, mobile cloud, RCS messaging and digital solutions for Service Providers and TMT’s, has signed a ten-year lease for 7,473 sq ft on the third floor.

Mark Holmes, Head of Asset Management, Moorfield Group said: “Aurora is a best in class modern office building and we are pleased that with the arrival of the Spaces business club and Synchronoss it is now 70 per cent let. There is very little good quality office supply available in Ealing. We believe that we are offering a very attractive proposition to occupiers requiring Grade-A space in a well-connected location with great amenities on hand, and at prices that are more competitive than Hammersmith and Chiswick.”

Richard Zoers of Hanover Green said: “These two lettings, both in excess of £40 per sq ft, signal the start of Ealing’s growth potential as an office location, particularly with Crossrail due for completion next year. This will mean journey times to Paddington of seven minutes, eleven minutes to Bond Street and regular trains to Heathrow in just eighteen minutes, it really is the ‘Queen of the Suburbs’.”

“Spaces and Sychronoss have recognised the potential of this building and it is great that occupiers are experiencing the benefits of this location, after the residential, retail, hotel and investor markets have been so busy in Ealing over the last two years. With the current tight supply, we expect rents in the borough for Grade A accommodation to continue to move on.”

Aurora has five floors of Grade-A office space, with a large reception and atrium. It is named after the Roman goddess of dawn due to a lightwell that runs from the ground floor to the roof, flooding every floor with natural light. As well as the atrium space it has on-site parking for 77 vehicles, a roof terrace and shower facilities.

There is 13,510 sq ft remaining at Aurora – 3,661 sq ft on the third floor and just under 10,000 sq ft on the fourth, which also benefits from a roof terrace. Quoting rents are £45 per sq ft.

Aurora sits right at the epicentre of Ealing’s business district. Ealing is the well-connected West London borough currently undergoing a regeneration-driven renaissance. The local economy is attracting evermore upscale retailers, restaurants and businesses and hundreds of new homes are being built – across several different schemes – to cope with the surge in interest in the area.

Moorfield Real Estate Fund III (MREFIII) purchased Aurora from Threadneedle Investments for £22 million in December 2014.

The development managers are XLB Property.

The agents for the building are JLL and Hanover Green.

Moorfield Group, on behalf of Moorfield Real Estate Fund IV (MREFIV), has purchased a £16.25 million distribution warehouse in Alsager, Crewe from Lagan Developments.

The 324,000 sq ft high quality, modern distribution warehouse is fully let to Geberit, a Swiss multinational group specialising in manufacturing and supplying sanitary products, until December 2020. This is Geberit’s only distribution centre in the UK and is located near Crewe, 3 miles from Junction 16 of the M6 motorway, allowing easy access to the UK’s road distribution network.

Commenting on the acquisition on behalf of MREFIV, Charles Ferguson-Davie, Chief Investment Officer, Moorfield, said: “We established MREFIV to target investments in Build to Rent (BTR), student accommodation, logistics, mixed-use projects and infrastructure-led opportunities.

“As part of the logistics strategy we are targeting units with short to medium term lease lengths. The ambition is to build a portfolio of good quality, well located, institutional grade logistics units where we can use our asset management capabilities and experience to bring further value to each asset. This is the first investment in our industrial strategy for the fund.

“There is a shortage of good quality logistics units and strong demand from occupiers for these properties, which is supporting rental growth and yield compression in the sector. We will be looking to invest in further opportunities in locations with strong supply and demand imbalances.”

Moorfield was represented by King Street Commercial and Lagan Developments by CBRE.

Moorfield has sold Atlantic Quay 1, a recently refurbished Grade A office comprising 121,737 sq ft in Glasgow, for £55m on behalf of MREFIII to Bank of London and the Middle East.

The entire Atlantic Quay area comprises a unique office complex in Glasgow’s financial district that fronts the River Clyde and is just a short walk from Glasgow’s main shopping, leisure and entertainment districts that is accessible to all major road, rail, air and bus links.

We acquired Atlantic Quay 1, 2 and 3 on behalf of MREFIII in September 2015 for c.£60m. Atlantic Quay 3 was let following a refurbishment to the Scottish Courts and Tribunal Services and subsequently sold to Legal and General for £50m. Atlantic Quay 1 was also refurbished and primarily let to the Department of Work and Pensions, who now occupy 85% of the building. We will now continue to work on fulfilling the potential of Atlantic Quay 2.

Moorfield has partnered with Resonance Capital to manage the three buildings.

Moorfield is now investing MREFIV, our latest fund that is targeting (i) build to rent (BTR), (ii) student accommodation, (iii) last-mile logistics, (iv) mixed-use opportunities, and (v) infrastructure-led special situations. We will continue to look for new opportunities to reposition assets through active asset management.

Moorfield has sold The Keel, a 240 unit Build to Rent (BTR) scheme in Liverpool, on behalf of MREFIII for £46.8m to Barings Real Estate.

The Keel comprises 240 apartments, with 425 beds, across 170,500 sq ft arranged over five floors. Formerly home to HMRC, the Keel was converted in partnership with Glenbrook into one of the UKs first designed for rent residential developments. Amenities include a manned concierge operation, an on-site gym, 207 car parking spaces and coordinated activities for the residents.

Moorfield also sold adjoining consented land, which will comprise c.260 apartments and take the scheme overall to c.500 units.

The Keel was delivered in 2015 and was one of the first BTR projects delivered in the UK and we are proud to have been at the forefront of this new and emerging sector. We have learnt a great deal from operating The Keel, which we will bring to our three other BTR projects (two in Manchester known as The Trilogy and Duet and one in Newcastle known as The Forge).

We will now be looking to identify new opportunities on behalf of our new fund, MREFIV, which is targeting further investments in the BTR sector, alongside; student accommodation, logistics, mixed-use projects and infrastructure-led opportunities.

Two directors of Edinburgh-based property developer Quartermile Developments have launched a new development company following a successful management buyout (MBO).

Chief Executive, Paul Curran, and finance director, Mike Milligan, have purchased the entire share capital in Quartermile Edinburgh Limited (QMEL) from MREFIII, a value-add fund managed by London-based property fund manager Moorfield Group, and funds managed by The Baupost Group, LLC, the Boston, Massachusetts-headquartered investment advisor. The value of the transaction is undisclosed.

QMEL comprises the Quartermile Developments, Quartermile Estates and Quartermile Ventures operating companies.

Quartermile Developments is widely recognised for successfully delivering Edinburgh city centre’s landmark £750m Quartermile mixed-use development. The company is also currently building 145 homes at its 52-acre, £100m Craighouse development in the Scottish capital.

The new holding company is called Qmile Group and is headquartered in Edinburgh city centre. All of Quartermile Developments’ 17 employees remain with the business.

The acquisition was made following a highly successful four-and-a-half-year investment by funds managed by Moorfield Group and Baupost.

During that period, two Grade A office buildings comprising 128,600 sq ft and 72,991 sq ft were funded, built and let to high-profile tenants including financial services business State Street Bank & Trust Company and audio chip designer Cirrus Logic. Over the same period, the Residence Inn hotel and predominantly all of the retail, leisure and car parking, as well as more than 500 apartments were sold at Quartermile.  There are currently no further properties available for sale, following the sale of the main hospital building and adjacent land to the University of Edinburgh.

Commenting on the MBO, Qmile Group CEO, Paul Curran, said: “With the final phases of Quartermile nearing completion it was natural for us to consider future opportunities. Our Craighouse development was already underway and selling well off-plan due to the strength of the Quartermile brand and our national and international reputation for design and build excellence.

“Our relationship with both Moorfield and Baupost has been excellent from very beginning; against this backdrop we were able to complete an MBO quickly and to everyone’s satisfaction.

“We now look forward to further implementing our strategic growth plans for Qmile Group. We are already exploring a number of mixed-use, residential and commercial opportunities and assessing various funding opportunities.

“Qmile Group will initially have a Scottish focus, but our ambition is to expand across the key cities in the UK. We are widely known for our ability to deliver high profile, complex projects, and we believe this gives us the strongest possible position upon which to continue to build our business and brand.”

Quartermile currently comprises 1,050 apartments; 370,000 sq ft of Grade A office accommodation; 65,000 sq ft of retail and leisure space; and seven acres of open landscaping. The development will also be home to the Edinburgh Futures Institute, the University of Edinburgh’s new interdisciplinary hub.

Moorfield Group’s chief investment officer, Charles Ferguson-Davie, added: “Quartermile has been a great success story for Moorfield and Baupost. We have enjoyed working with Paul, Mike and the rest of the Quartermile team to optimise, deliver and realise the Quartermile masterplan.

The Quartermile development was a complicated mixed-use project which required a broad range of skill sets. Given that experience and track record we have every confidence that Qmile Group will now go on to cement their position as one of the UK’s most highly capable property developers.”

Law firm Brodies advised Qmile Group, whilst MREFIII and Baupost were represented by Herbert Smith Freehills and Ropes & Gray.

For further information on Quartermile visit www.qmile.com

Moorfield Logistics Partnership Limited (MLP), a subsidiary of Moorfield Real Estate Fund III (MREFIII), a value-add fund managed by Moorfield Group, has sold a £42.5 million portfolio of distribution warehouses to an institutional investor.

The portfolio is made up of five units in four locations; Rushden, Warrington, Deeside and Huddersfield.

The Rushden units comprise two warehouses totalling 239,644 sq ft let to the retailer, Urban Outfitters; the Warrington unit is a 94,234 sq ft warehouse let to the retailer, Next Group Plc; the Deeside unit is a 162,116 sq ft warehouse let to the paper and packaging manufacturer, Mayr-Melnhof Packaging UK Ltd; and the Huddersfield unit is a 47,666 sq ft industrial unit with offices let to the Council Borough of Kirklees.

Commenting on the disposal on behalf of MREFIII, Charles Ferguson-Davie, Chief Investment Officer, Moorfield, said: “We established the Moorfield Logistics Partnership to target industrial and logistics units with lot sizes of c.£15 million and with short to medium term lease lengths. The ambition remains to build a portfolio of good quality, well located, institutional grade logistics units where we can use our asset management capabilities and experience to bring further value to each asset.

“There is a shortage of good quality industrial and logistics units and strong demand from occupiers for these properties, which is supporting rental growth and yield compression in the sector. The unsolicited offer on the assets was at a level that resulted in the business plan being achieved sooner than anticipated

“These assets that we have just sold were owned by MREFIII and we will now be looking to invest in new opportunities on behalf of Moorfield Real Estate Fund IV (MREFIV), which achieved a first close in October 2017. MREFIV is targeting investments in residential Build to Rent (BTR), student accommodation, logistics, mixed-use projects and infrastructure-led opportunities.”

MLP was represented by Gerald Eve and the purchaser by ACRE Capital Real Estate.

Moorfield Group, the private equity real estate fund manager, has selected RealPage’s YieldStar® revenue management solution for deployment across their funds’ build to rent (BTR) properties. Moorfield Group will be one of the first BTR developer and managers to implement the Yieldstar Revenue Management System in the UK.

RealPage is a leading global provider of software and data analytics to the real estate industry. Broadly adopted in North America, YieldStar’s algorithm considers internal supply and demand, competitive influences, asset attributes and consumer demand to optimize revenue for every unit, every day across millions of apartment homes.

Heiko Figge, Head of Hospitality, Leisure and Operations, Moorfield Group, said: “We focus on innovation and understand the importance of early adoption of key technologies and software to enable us to maximize our efficiency.

“YieldStar allows us to manage our rental streams and offerings to maximize revenue, as well as capturing historical data to enable us to accurately predict future letting trends. We see the early adoption of a sophisticated Revenue Management System as another sign of our commitment to the BTR space. We have extensive experience in the hotel sector and therefore the employment of a Yield Management System was an obvious next step as we will be bringing another 500 units to the market this summer.”

Deployments will begin with The Keel, a 240-unit purpose convert BTR scheme in Liverpool, which represents a milestone as the first UK new-generation build-to-rent scheme completed outside of London. Moorfield Group will also leverage YieldStar on their assets in Newcastle (The Forge) and Manchester (The Trilogy), which both open this summer.

Heiko Figge continued: “Moorfield Group chose YieldStar based on its ability to support inventory management for the company’s portfolio of properties. In our review of other revenue management solutions, YieldStar became the obvious choice given its extensive experience and deployment in the US and the steps they have already taken to align their product to the UK market.”

“YieldStar’s capabilities complement our overall business strategies, and allow us to deliver premium rents that are aligned to our target markets. With YieldStar, we can empower and incentivize our managers to take calculated risks to drive optimal performance.”

Keith Dunkin, Senior Vice President of Asset Optimization at RealPage said: “We are delighted to be have been selected by Moorfield for implementation across their BTR platform. Moorfield have been pioneers in the new generation UK build to rent sector and have a significant pipeline of over 700 units for delivery over the next 18 months. We are looking forward to getting the software into place to help Moorfield maximize performance for their investors.”

Moorfield had a busy year last year – please download our January 2018 Newsletter to read our latest news.

Another deal has been concluded at Moorfield Group’s Aberdeen Innovation Park, with existing occupier, East Coast Oil & Gas (EC-OG) expanding operations at the recently refurbished Davidson House on Campus One at Aberdeen Innovation Park.

EG-OC has signed up for an additional 1,200 sq ft at Davidson House, taking their total floorspace to 2,230 sq ft. A new four-year lease has been agreed at a rental of £20.75 per sq ft.

EC-OG provides expert engineering services for critical well barrier equipment, including wellheads, xmas trees and intervention systems. The team recently won a “VIBES” award in the Innovation category at the Scottish Environment Business Awards, for the Subsea Power Hub, a hybrid-based ocean current energy conversion system with integrated energy storage. The award recognised the company’s position at the forefront of eco-innovation.

EC-OG Commercial Director, Heather Sharkey said: “It has been a really exciting time for our team recently. We needed the additional space to diversify our business and Davidson House provides the perfect location for our expansion plans.”

Speaking on behalf of the parks’ owner, Moorfield Real Estate Fund III, Mark Holmes from Moorfield Group said: “It is great news to see EC-OG expand operations here at Aberdeen Innovation Park. We always adopt a ‘can-do’ approach and were able to offer the company a new suite which meets their needs.”

Matt Park of Knight Frank in Aberdeen, added: “Despite challenging times in the North East, we are continuing to see demand for the quality space on offer at both parks, which is evident at Davidson House.”

Knight Frank and Ryden are joint agents for Aberdeen Energy & Innovation Parks

Moorfield Group (Moorfield) and Resonance Capital have secured a new letting at Atlantic Quay 1, Glasgow by signing 15-year lease with the Department For Work and Pensions (DWP) on 85,000 sq. ft. This follows close on the heels of the long lease of 80,000 sq ft to the Scottish Courts and Tribunals Services at Atlantic Quay 3.

DWP will join a number of high profile organisations already based at Atlantic Quay Buildings 1, 2 and 3, including housebuilder Mactaggart & Mickel and Lloyds Banking Group.

Commenting on the second major letting since the acquisition of Atlantic Quay Buildings 1,2 & 3, Mark Holmes, Head of Asset Management at Moorfield said: “We are delighted to have secured yet another Government backed, long-term lease for Atlantic Quay. This letting further endorses Atlantic Quay as location of choice for high quality, ‘Grade A’ office space that is currently lacking in Glasgow City Centre.

“Our design focused refurbishment, together with the full range of concierge services and events program that we implemented has ensured that the Atlantic Quay Buildings continue to be an excellent option for high quality tenants. Moorfield has been a strong supporter of investment in Scottish real estate, and this letting further supports our ongoing belief in the strength of the Scotland occupier market.”

Angela Higgins of Resonance Capital said: “We look forward to welcoming the Department for Work and Pensions to Atlantic Quay 1. The scheme is in the right position and right location for DWP and they will take occupancy on the ground, third, fourth and fifth floors. We have worked very closely with them to offer a unique office space that will meet their specific needs.

“Atlantic Quay Buildings offers its tenants a contemporary business community with amenities such as a prescription delivery service, art exhibitions that support local talent and social and fundraising events for our many charities.”

Moorfield Real Estate Fund III purchased Buildings 1, 2 and 3 Atlantic Quay in September 2015 and a comprehensive refurbishment programme to revitalise the scheme will complete in 2018. The scheme is just a short walk from Glasgow’s main shopping, leisure and entertainment districts and accessible to all major road, rail, air and bus links.

On behalf of the Moorfield Real Estate Fund III (MREF III), Moorfield Group (Moorfield) has sold The Shipping Building at The Old Vinyl Factory development in west London to Floreat Real Estate, on behalf of Real Assets (RA) Global Opportunity Fund I, for in excess of the quoting price of £29 million.

The Shipping Building is a landmark art deco office building of 99,990 sqft over ground and six upper floors. The accommodation provides a flexible, air conditioned office environment with good natural light. The property benefits from 273 car parking spaces in the newly purpose built ‘Music Box’ car park.

The building is multi-let to seven office occupiers including Central Research Laboratory, Kingston Smith LLP, Sonos UK and Sita Information Networking Computing UK.

The Shipping Building forms an integral part of The Old Vinyl Factory development, one of west London’s most significant regeneration schemes. The £250 million regeneration of The Old Vinyl Factory, when complete, will comprise 642 residential units, 550,000 sq ft of office accommodation, a variety of restaurants and shops, a four-screen cinema complex, a sustainable energy centre, a live music venue and a high quality public realm.

Commenting on the disposal on behalf of MREFIII, Charles Ferguson-Davie, Chief Investment Officer, Moorfield, said:

“We targeted Hayes as an investment location because of the impending arrival of Crossrail, and in particular the Old Vinyl Factory because of the ongoing mixed-use regeneration of the surrounding local area.

“We have sold the Shipping Building earlier than we originally intended and are pleased with our asset management achievements that helped to reposition the property. The Shipping Building offers a great place to work and we wish Floreat success with their investment.”

Commenting on behalf of Floreat Real Estate, investment director Jonathan James said:

“We are delighted to have acquired the Shipping Building, which supports our strategy of investing in growth locations in London and select UK cities. We focus on quality buildings where we can drive value through asset management.

“Creating workplaces that offer the connectivity and amenity to attract talent is a key driver for us. We believe the regeneration of the Old Vinyl Factory site, together with the arrival of Crossrail, provides a compelling offer for occupiers.”

Moorfield was represented by Savills and Floreat was represented by Fineman Ross.

On behalf of the Moorfield Real Estate Fund III (MREF III), Moorfield Group (Moorfield) has sold Atlantic Quay 3, in Glasgow City Centre to LGIM Real Assets (Legal & General) for £50 million.

Atlantic Quay 3 is a 79,500 sq ft high quality modern office built to a ‘Grade A’ specification and is fully let on a long-term lease to the Scottish Courts and Tribunals Service.

Newly refurbished Atlantic Quay 3 features a new double-height reception; new VRF air conditioning system; new LED lighting; three 13 person lifts with a separate goods lift. The building benefits from 24-hour security, 31 secure car parking spaces and 100 cycle racks in the basement.

MREFIII acquired Atlantic Quay 1, 2 and 3, which comprise 280,000 sq ft of office space, in September 2015 for c.£60 million, reflecting an initial yield of 8.5% for the three buildings. Moorfield is partnered with Resonance Capital to manage the three buildings.

The entire Atlantic Quay area comprises a unique office complex that fronts the River Clyde. It is just a short walk from Glasgow’s main shopping, leisure and entertainment districts and accessible to all major road, rail, air and bus links.

Commenting on the disposal on behalf of MREFIII, Charles Ferguson Davie, Chief Investment Officer, Moorfield, said: “We identified the Atlantic Quay buildings as high quality offices at the heart of Glasgow’s International Financial Services District, in a prime riverside location and in an office market starved of new space. They were ready for refurbishment when we purchased them in September 2015 and we are proud to have developed such a successful scheme with Resonance Capital.

The recent lettings in the vicinity (including the Government Property Unit’s selection of Atlantic Square for a 300,000 sq ft regional hub) also support our belief in the quality of the location. The evolution of Atlantic Quay is underway and we will continue to work on fulfilling the potential of Atlantic Quay 1 and 2.”

Legal & General was represented by Savills and Addleshaw Goddard.

On behalf of the Moorfield Real Estate Fund III (MREF III), Moorfield Group (Moorfield) has sold Derby’s Riverlights Holiday Inn hotel, a prime destination for tourists and business visitors to the region, to Starboard Hotels, the privately owned operator of multi-branded hotels.

The Holiday Inn, a full service hotel with conference and banqueting facilities, was brought to the market for offers over £6 million. In addition to the hotel, Starboard has also purchased two retail units with a view to expanding the hotel restaurant.

Commenting on the disposal on behalf of MREFIII, Charles Ferguson-Davie, Moorfield CIO, said: “This hotel has performed very well for us and we are pleased to have agreed the sale to Starboard. We still own the remainder of Derby Riverlights, which is a vibrant mixed-use leisure destination. We have worked hard to improve the appeal of Riverlights to occupiers and customers alike and are proud of our achievements.”

Founder and Managing Director of Starboard, Paul Callingham said: “It has been a tremendous year of growth for Starboard and we are delighted to have made another important acquisition. We welcome the team from the Holiday Inn Derby into the Starboard ‘family’ and we are looking forward to working with the General Manager Carrie Louise Holleran and her team. “

Moorfield Group bought the mixed-use Riverlights scheme in Derby out of administration for £16.5 million, in 2015. The 200,000 sq ft building comprises a combination of retail and leisure units, alongside two hotels occupied by Holiday Inn and Premier Inn, as well as a Genting Casino.

Built in 2010, Derby Riverlights is located on the eastern edge of Derby city centre, adjacent to the intu Derby shopping centre and Riverside Gardens.

The property also incorporates Derby’s main bus station at the rear, and is adjacent to the city’s Castleward area, which is undergoing a £100 million redevelopment.

Moorfield Real Estate Fund III (MREFIII) has sold its premium student apartment scheme, Century Sq in Sheffield, to iQ Student Accommodation. iQ Student Accommodation is one of the largest providers of student accommodation in the UK, providing homes to over 24,000 students.

Century Sq offers a mix of 305 studio, twodio and multi-bedroom/cluster apartments with extensive communal facilities. The scheme is centrally located in close proximity to the University of Sheffield’s campus and is one of the largest private purpose built schemes in the city.

MREFIII purchased the site in 2015 and having secured planning consent for the change of use, developed Century Sq in partnership with Worthington Properties. The scheme opened in 2016 when full occupancy was achieved.

Commenting on the disposal on behalf of MREFIII, Charles Ferguson-Davie, Chief Investment Officer of Moorfield, said: “We identified the student market in Sheffield as having attractive supply and demand dynamics and we are proud to have developed such a successful scheme that is so popular with the students. We had planned to hold the investment for longer but the off market approach from iQ resulted in an early realisation of our business plan.

“Moorfield has now developed and operated some 5,000 student beds and we will continue to look for investment opportunities in the sector, as well as adding to our investments in the Build to Rent sector, which now comprises a platform of some 1,300 beds across five schemes.”

Iliya Blazic, Chief Investment Officer of iQ commented “Sheffield is a vibrant and growing city which has seen major investment in recent years. We are pleased to be contributing to that with our investment in Century Square, and recent investments to enhance our Brocco, Steel and Fenton House sites. In total we now provide 2,435 Sheffield students with high quality, safe homes from which to make the most of their university years.”

Moorfield Group, the UK real estate private equity fund manager, has successfully and materially surpassed the £100 million target on the first close of its new Moorfield Real Estate Fund IV (MREFIV).

MREFIV is Moorfield’s fourth value-add fund which is expected to have an investment focus on Build to Rent (BTR), Student Accommodation and Logistics, alongside opportunistic mixed-use and infrastructure led real estate opportunities. The fund will be seeded with a BTR scheme in Manchester’s Media City (Erie Basin) and an office building in Newcastle’s Cobalt Park.

The fund, which has a final target of £350 million, has attracted a strong global investor base from a number of blue-chip European and US pension, endowment and foundation funds.

Marc Gilbard, Moorfield Group CEO, said: “We are very pleased with the response we have had from the investors that we have met as part of raising this new fund. Our investors place a great deal of trust in our ability to invest their capital wisely and we will look to be patient and disciplined over the three year investment period.

Moorfield has a broad range of skills and experiences, established over almost 22 years of investment and across most real estate sectors throughout the UK, which enables us to be flexible and dynamic in our search for opportunities with the appropriate risk/reward profile. In particular, we have been pioneers in a number of alternative real estate sectors where we continue to see opportunity today.”

Charles Ferguson-Davie, Moorfield Group CIO said: “We have an exciting pipeline of opportunities in the themes that the Fund is looking to invest in. The ‘beds and sheds’ themes, comprising BTR, student accommodation and last mile logistics have compelling demographic, structural and societal drivers that are creating strong demand in markets where there is also limited supply through lack of development in recent years. We expect these three themes to make up 75% of the Fund (as they have done for MREFIII), with the remainder targeted at mixed use opportunities and infrastructure-led real estate where we can reposition assets and create vibrant communities.”

The two schemes that will seed the fund are in Manchester and Newcastle. Erie Basin in Salford Quays, Manchester is a 220,000 sq ft 16-storey BTR development, designed by award winning architects Shepherd Robson, consisting of 270 one, two and three-bedroom residential apartments with gardens, amenity space and car parking. Cobalt 23 is a 128,500 sq ft vacant high quality office building on the Cobalt Business Park in Newcastle.

Moorfield became a private equity real estate investor in 1996 and has a history and track record of investing across a broad range of established and emerging real estate sectors. It currently has c.£1.2bn under management and has raised c.£1.5bn since 2005 via its value–add MREF funds and its dedicated special purpose fund (MAREF) that owns the senior housing platform Audley.

Two of the MREF funds have now been fully realised, and MREFIII is materially invested and recently made its first realisations. MAREF acquired Audley, the leading UK retirement village developer and operator in December 2015, and recently raised a further £85 million from existing investors, to take the total raised to £285 million, so as to provide Audley with further capital to grow.

On behalf of the Moorfield Real Estate Fund III (MREF III), Moorfield Group (Moorfield) and Glasgow-based joint venture partner Resonance Capital, have announced that Atlantic Quay 3 is now fully let on a long term lease to the Scottish Courts and Tribunals Service, on completion of a multi-million pound refurbishment of the Building.

Completion of the deal on Atlantic Quay 3, will see the Scottish Courts and Tribunals Service – the scheme’s first new tenant –  fully occupy 79,500 sq. ft. of ‘Grade A’ open plan flexible office space over its ground and six upper floors.  Moorfield Real Estate Fund III purchased Buildings 1, 2 and 3 Atlantic Quay in September 2015 and a comprehensive refurbishment programme to revitalise the scheme will complete in 2018.

Atlantic Quay 3 features a new double-height reception; new VRF air conditioning system throughout to 1:8 design ratio; 2.7m clear from floor to ceiling;  new LED lighting throughout; three 13 person lifts with a separate goods lift and new refurbished finishes to all lift lobbies. The building also benefits from 24 hour security, 31 secure car parking spaces and 100 secure cycle racks in the basement.

Mark Holmes, Head of Asset Management at Moorfield, said: “We are delighted to welcome the Scottish Courts  and Tribunals Service to Atlantic Quay 3. We have worked very closely with them to ensure that their occupational requirements for the building are successfully achieved. Announcing that Atlantic Quay 3 is now fully let on a long term lease to the Scottish Courts and Tribunals Service, on completion of a multi-million pound refurbishment, reinforces our confidence in the quality of Atlantic Quay Buildings 1,2 &3 and its location in the City’s business district.”

Ken Barrett of Resonance Capital commented: “We are delighted to have brought this high quality ‘Grade A’ refurbishment to completion on time and well within budget. The supply of buildings of this size and specification in Glasgow is very limited at the moment and we are pleased that our ability to progress the development speculatively has been reflected in the building already being fully let to the Scottish Courts and Tribunals Service.”

Eric McQueen, Chief Executive, the Scottish Courts and Tribunals Service (SCTS) said: “The SCTS has worked closely with Her Majesty’s Courts and Tribunals Service (HMCTS) to rationalise accommodation in Glasgow and create this new Tribunals Centre. The centre will have 34 hearing rooms and provide excellent facilities for all tribunal users, with specific support for young users with additional support needs.”

A comprehensive refurbishment of Glasgow’s Atlantic Quay Buildings 1, 2 and 3, will create a contemporary business destination on the City’s waterfront, The overall design influence of the scheme is inspired by the colour palette of the Nordic countries. A bespoke art collection by the award winning photographer Damian Shields will feature Nordic and Scottish artwork in the public areas of Atlantic Quay 1, to be unveiled on completion in 2018.

The scheme is just a short walk from Glasgow’s main shopping, leisure and entertainment districts and accessible to all major road, rail, air and bus links.

For further information please visit www.atlanticquay.com.

The Moorfield Audley Real Estate Fund (MAREF) has successfully raised a further £85 million from existing investors to take the total raised to £285m.

Moorfield Group, the UK real estate private equity fund manager, created MAREF to acquire Audley, the leading UK retirement village developer and operator, in December 2015.

Audley, one of the UK’s fastest growing companies, is the UK’s market leading luxury retirement village provider and is ramping up for a period of significant and sustained growth. This latest fund raising round creates a total war chest of over £700m to be invested over the next five years, drawn from a combination of equity, development income and investment debt.

To date, the fund has attracted institutional investors from the US and continental Europe, and this new funding will support the acquisition and development of new Audley Villages in key locations, as well as sites for its new mid-market proposition, Mayfield Villages. Investors have been attracted to Audley’s vision of creating a best-in-class product, differentiated from its competitors in many ways and not least by its innovative business model, with Audley both developing and operating the villages.

As well as the 15 villages that sit under the Audley Villages brand, which when completed will provide at least 2,000 units nationwide, 500 units are currently planned at future Mayfield Village sites.

Marc Gilbard, Moorfield Group CEO, said: “Over the nine years we have worked with Audley we have seen that a strong management team, premium design and ambitious growth plans have led to the business being a significant success story. The retirement living sector has become one of the biggest growth areas in UK real estate. We decided to raise the additional capital from our present investors in the fund and we are very pleased to have reached our target.

“The new capital will give Audley the opportunity to acquire new sites, develop existing sites and allow the expansion of the business. We continue to expect to see a strong return for our investors as Audley capitalises on the clear demand for quality living options for the older generation in the UK.”

Nick Sanderson, Audley CEO said: “This latest round of fundraising further underlines what we at Audley and Moorfield have known for some time; retirement living in the UK is a growth market, principally as a result of the significant shortage of retirement housing and growing demand is now vastly outstripping supply. Market penetration is less than 1% in the UK, compared with 17% in the USA, and 13% in Australia and New Zealand.

“This new investment will allow us to explore new sites for both the Audley and Mayfield brands, delivering the products and services that our customers demand. We are a profitable business with a robust balance sheet. Our vision is to continue transforming the market by providing choice and high quality housing, and investment such as this will allow us to maintain our heritage of innovation and realise this vision.”

Audley’s brands serve two distinct audiences. Audley Villages is the luxury retirement brand, delivering a first class experience and award winning design to owners. Typically, heritage properties are adapted to incorporate existing features from the original buildings, bringing them back to life by turning them into modern, high specification houses, apartments and communal spaces, akin to a boutique hotel. Owners also benefit from access to luxurious Audley Club facilities which include a restaurant, bar/bistro, library, a health and wellbeing centre and swimming pool. All owners can also take advantage of the highest quality care in their own home.

Responding to customer demand, Audley last year launched Mayfield Villages, a mid-market proposition for which the first location will be announced shortly. The premise behind Mayfield is to offer the same level of service as Audley Villages, with high living standards and excellent care, but at a lower price point. These will be larger villages, typically in urban/suburban environments.

Audley was ranked 73^rd in the 2016 Sunday Times Virgin Fast Track 100 league table of the UK’s fastest growing private companies by sales growth over the past three years, and CEO Nick Sanderson was 8^th in the 2016 Health Investor Power Fifty Most Influential Leaders’ Awards. He was also handed the inaugural Pathfinder Award for innovation in healthcare at the same ceremony.

Moorfield Logistics Partnership (MLP), on behalf of Moorfield Real Estate Fund III and Moorfield Group, the UK real estate private equity fund manager, has acquired two modern and institutional quality logistics units in Huddersfield, West Yorkshire from Aviva Investors.

The acquisitions are the second investment into MLP, following the purchase of a £30 million logistics portfolio in the Midlands and North of England from M&G Real Estate in October 2016.

Unit one is 385,498 sq ft with good eaves height, a service yard and car parking provision and is let to Instore Ltd, which operates 340 stores across the UK including Poundstretcher and Ponden Mill.

Unit two is a 47,556 sq ft steel portal frame warehouse with good eaves height, a service yard and car parking provision and is let to the Council Borough of Kirklees.

Charles Ferguson-Davie, Moorfield Group CIO said: “We established the Moorfield Logistics Partnership to create a portfolio of industrial and logistics units that meet current occupier requirements.

“Both of these assets are of institutional quality with good covenants and are in line with our strategy to build a portfolio of good quality, well located, institutional grade logistics units where we can use our asset management capabilities and experience to bring further value to each asset.

“It has been well documented that there is a national shortage of good quality industrial and logistics units. Strong demand from occupiers for assets in the right locations and the undersupply mean that we see the potential for further rental growth in the sector.”

Moorfield has purchased Cobalt 23 on the Cobalt Business Park in Newcastle in partnership with Highbridge. The 128,500 sq ft vacant high quality office building was bought out of receivership.

The building has the largest floorplates on Cobalt Business Park and could be occupied on a single-let basis or sub-divided for multi-let occupancy.

Cobalt Business Park is the largest business park in the UK and the premier office park in the north east. It is currently 90 per cent let and comprises a number of blue-chip occupiers, including Accenture, Hewlett Packard, P&G, IBM, Siemens and Santander. The park was developed as an Enterprise Zone and almost all the other office buildings on the site are fully let.

Charles Ferguson-Davie, Moorfield Group CIO said: “We saw this as a good opportunity to purchase a modern office building on the premier business park in the North East in conjunction with the developer of the Park, which is due to benefit from new infrastructure investment. We will together with Highbridge invest in the building and re-launch it to the market as either a single let HQ or for multi-let occupancy.

“There is very little good quality available office supply and we believe that we can offer a very attractive proposition to corporate occupiers requiring high quality space in a well-connected location.”

The Newcastle office market has seen improvement in recent years and the vacancy rate is low; helped by positive net absorption, limited new development and conversions of office buildings to alternative uses. Rents are growing and with a lack of development pipeline the fundamentals are set to remain robust.

Cobalt Business Park is set to benefit from substantial infrastructure investment including c.£75m of road improvements, including the new triple-decker roundabout being added to the A19 and the recent installation of a 25 mile dark fibre network connecting Cobalt business park to Newcastle city centre and improving the park’s connectivity. There is also the potential introduction of a Metro station on the park, which has received in principle funding approval.

Guy Marsden, of Highbridge Properties Plc said: “Cobalt 23 is an office that provides the best of both worlds. It is a significant energy efficient, environmentally sustainable office building which has the flexibility to be sub-let in floors .

Cobalt Business Park is located five minutes from the A1, 10 minutes from Newcastle city centre and 20 minutes from Newcastle International Airport. Both the city centre and the airport can be accessed by the Metro and the park offers a regular shuttle to the nearest station.

The agents for the building are BNP Paribas and Bray Fox Smith.

The International Property Securities Exchange (“IPSX”), which will be the first regulated exchange dedicated to the admission and trading of securities in commercial real estate assets (CRE), today announces that Moorfield Group (“Moorfield”) has invested in the current IPSX funding round. The terms of its investment are not disclosed.

Moorfield is a leading UK specialist private equity real estate fund manager and has been investing in UK real estate on behalf of global institutions for over 20 years. Moorfield invests in single assets, portfolios and real estate based operational businesses and has invested in over £3.4bn of assets across almost every real estate sector, including logistics, office, retail, PRS, senior living and student accommodation.

The commitment from Moorfield follows prior investments from a number of leading players in the CRE industry, including British Land, four of the Partners in Tritax Group, and M7 Real Estate, all of whom were attracted by the alternative investment model offered by the IPSX platform.

Commenting on the announcement, Anthony Gahan, Chairman of IPSX, said: “As we move towards launch, our dialogue with the wider real estate industry and associated ecosystem continues to discover strong demand for a new class of commercial real estate securities with regulated trading platform that will provide greater transparency, liquidity and attractive yields to investors. As a leading UK private equity real estate fund manager with a track record of pioneering innovation and emerging sectors, we are extremely proud that Moorfield has joined our other investors in their support for IPSX and as a further demonstration of the appetite from the industry for innovation in CRE investment.”

Marc Gilbard, CEO of Moorfield added: “I am a keen supporter of the IPSX proposition and feel that the creation of a liquid flexible market for the realisation, investment and trading of a range of real estate assets is long overdue. In broadening the access to an asset class which is only currently available directly to institutional, professional or high net worth investors, IPSX will also provide significant benefits to many other real estate investors. Of course it will also provide some much needed real time valuation evidence. I would encourage all professional investors to support the growth and launch of this platform.”

• Moorfield and Glenbrook will develop a 270 unit scheme at Erie Basin, adjacent to MediaCityUK in Salford Quays –
•  Planning permission recently granted for 270 homes –

Work on the last undeveloped site overlooking Erie Basin in Salford Quays is set to start following the partners’ acquisition of the site from Peel and the granting of planning permission. The Build to Rent (BTR) development will create 270 new homes, residents’ gardens, amenity space and car parking.

Moorfield and Glenbrook will work together on the development, with construction due to begin this summer. Moorfield will fund the scheme and retain ownership when it is completed.

The site is located adjacent to MediaCityUK in the heart of Salford Quays with waterside views and the cultural, entertainment and leisure offer of an internationally recognised destination.

The development is the third BTR scheme undertaken between Moorfield and Glenbrook, following the 240-apartment development of The Keel at Queen’s Dock, Liverpool and the 232-apartment scheme now known as Trilogy in Castlefield, Manchester. It will be Moorfield’s fourth BTR development, after work recently began on the 280-apartment Forth Banks site in Newcastle.

When completed it will be a 220,000 sq ft 16-storey scheme, designed by award winning architects Shepherd Robson, consisting of 270 one, two and three-bedroom residential apartments with gardens, amenity space and car parking.

Charles Ferguson-Davie, Moorfield Group CIO said: “Moorfield has been a pioneer of the Build to Rent sector and we are pleased to be adding Erie Basin to our platform. With this new project, which is next to the vibrant and growing MediaCityUK, we are aiming to deliver another landmark BTR scheme, focusing on design and professional concierge style services to create an attractive place to live.

“The BTR sector is in its infancy and we are proud to be at the forefront of it as we have been with other sectors such as student accommodation and retirement living. BTR will form a fundamental part of many cities’ wider residential strategies and we intend to develop more schemes and so help deliver much needed housing supply across the country.

“Moorfield is committed to BTR, which is underpinned by a structural lack of supply and strong demand, and we are progressing with a pipeline of exciting opportunities with an aim to build a c.2,000 unit platform.”

Ian Sherry, director at Glenbrook, commented: “This latest deal further demonstrates our confidence in the built to rent sector in the regions. Our ability to identify suitable sites for purpose built build to rent and then deliver viable schemes has enabled us to develop a long term relationship with Moorfield. We have achieved consent on over 1,000 apartments in the past three years and we continue to look for further opportunities across the UK.

“Erie Basin meets all the criteria when identifying suitable sites for Build to Rent. Visually, the building design is very impressive helped by its prominent dock side position. But what sets Erie Basin apart is its position next to MediaCityUK, which will provide residents with a quality address in a premium location and with excellent transport links to the wider North West.”

Graham Construction has been appointed as the main contractor. The scheme is due to complete in summer 2019.

Work on Newcastle’s first build to rent (BTR) development is set to start following a joint venture which will create 280 new homes in the city centre.

Worthington Properties, Moorfield Group and Panacea Property Development will work together to develop the £37 million Forth Banks site, with construction due to begin this month. Moorfield Real Estate Fund III (MREFIII) will fund the scheme and retain ownership when the development is completed.

The Forth Banks site is located near to Newcastle’s Central Station, adjacent to the Stephenson Quarter. The development, which will have views of the River Tyne, is to be built on a former brownfield site and is an area that Newcastle City Council has targeted for regeneration.

The development will be built by the Marcus Worthington Group’s construction arm, Worthington Construction and when completed will see 280 one to three-bedroom residential apartments in three blocks between seven and nine storeys high. It will also comprise a 3,000 sq ft (279 sq m) retail unit located on the ground floor.

The is the second joint venture the Marcus Worthington Group, Panacea Property Development and Moorfield Group have worked in partnership on, the first being an £18 million student development in Sheffield, which is now owned by MREFIII and operated by Fresh Student Living.

Russ Worthington, director of Worthington Properties said: “The Worthington Group has always been involved in ground-breaking schemes and the delivery of this project in Newcastle is something we’re very pleased to be involved in.

“It will be a key residential project in the city and one that is going to bring back into use a brownfield site and contribute to Newcastle’s ongoing renaissance, as well as creating jobs and providing a boost to the economy. Newcastle is a vibrant, growing city with several initiatives dedicated to regeneration, which we’re proud to be contributing to through the Forth Banks development.”

Charles Ferguson Davie, Moorfield Group CIO added: “Moorfield has been a pioneer of the new BTR sector through The Keel in Liverpool, which was one of the first schemes to open, and The Trilogy in Manchester which is under construction. With this new project in Newcastle we are aiming to deliver another landmark BTR scheme, focusing on design and service to create an attractive housing option in the city centre.

“The BTR sector is in its infancy and we are proud to be at the forefront of it. The sector forms a fundamental part of many cities’ wider residential strategies and we intend to develop more schemes and so help deliver much needed housing supply across the country.

“Moorfield is committed to BTR as a sector, which is underpinned by a structural lack of supply and stron demand, and we are progressing with a pipeline of exciting opportunities with an aim to build a c. 2,000 unit platform. We have a track record of pioneering emerging real estate sectors such as student accommodation, budget hotels, luxury hostels and retirement villages and we think that BTR has enormous potential.”

Neil Patten, managing director at Panacea Property Development, said: “The Forth Banks scheme represents a strong commitment from Newcastle City Council to demonstrate support for BTR. We look forward to working with our joint venture partners to transform this previously underutilised brownfield site into a high quality residential scheme that can assist in the regeneration of other areas.”

• First acquisition for newly created Moorfield Logistics Partnership –

New entity Moorfield Logistics Partnership (MLP), on behalf of Moorfield Real Estate Fund III and Moorfield Group, the UK real estate private equity fund manager, has acquired a £30 million logistics portfolio in the Midlands and North of England from M&G Real Estate.

The portfolio is made up of three assets (four individual units) in Rushden, Warrington and Deeside. Rushden comprises of two warehouses totalling 239,644 sq ft and is let to the multinational clothing corporation, Urban Outfitters; Warrington is a 94,234 sq ft warehouse let to the retailer, Next Group Plc; and Deeside is a 162,116 sq ft warehouse let to the paper and packaging manufacturer, Mayr-Melnhof Packaging UK Ltd.

This is Moorfield’s first venture back into the logistics sector following the success of Logistics Property Partnership, a 50% joint venture with SEGRO, which was sold in July 2014.

Charles Ferguson Davie, Chief Investment Officer, Moorfield Group, said:

“This acquisition is a seed portfolio for the Moorfield Logistics Partnership. We have established the new entity to target industrial and logistics units with lot sizes of up to £15 million and with short to medium term lease lengths. The ambition is to build a portfolio of good quality, well located, institutional grade logistics units where we can use our asset management capabilities and experience to bring further value to each asset.

It has been well documented that there is a national shortage of good quality industrial and logistics units. Strong demand from occupiers for assets in the right locations and the undersupply mean that we see the potential for further rental growth in the sector.”

• Moorfield committed to further BTR development pipeline
• Second BTR development with Glenbrook
• First BTR scheme, Liverpool’s The Keel, now fully occupied

Moorfield, the UK real estate private equity fund manager, has announced an agreement with Glenbrook, the property development company, to fund the £40 million development of a new Build to Rent (BTR) scheme at Ellesmere Street in Manchester City Centre.

This will be Moorfield and Glenbrook’s second development together, following the £30 million transformation of The Keel in Liverpool, the former HMRC building on Queen’s Dock, into 240 stunning waterside rental apartments. The Keel is now fully occupied.

The 232-unit scheme was granted planning consent by Manchester City Council in April and will offer over 200,000 sq ft of residential and ancillary accommodation across three buildings, ranging between eight and 12-storeys. Construction will commence on site at the end of July with completion scheduled for summer 2018.

Charles Ferguson Davie, Chief Investment Officer, Moorfield, said:

“Moorfield has pioneered the development of Build to Rent with The Keel, which is among the first of its kind in the country and has become one of the most desirable locations in which to live in Liverpool. With this new project in Manchester we are aiming to deliver another landmark BTR scheme, focusing on design and service to create an attractive housing option in Manchester.

“The Build to Rent sector is in its infancy and we are proud to be at the forefront of it. The sector forms a fundamental part of many cities’ wider residential strategies and we intend to develop more schemes across the country and so help deliver much needed housing supply.

“Brexit has created much uncertainty, particularly for real estate investors and developers in the UK, but Moorfield is committed to the BTR sector and has a pipeline of exciting

opportunities with an aim to build a 2,000 unit platform. We have a track record of pioneering emerging real estate sectors such as student accommodation, budget hotels and retirement villages and we think that BTR has enormous potential.

“With the great success of full occupancy at The Keel in Liverpool validating our vision, we aim to develop and build a portfolio of consumer focussed, design-led, desirable modern rental homes for professionals, families and retirees alike and create new, professionally managed communities for City Centre living.”

The Keel in Liverpool is a new luxury development offering a range of studio, one, two and three bedroom apartments, complete with a residents’ only gym and waterside terrace. Surrounding a central quay and overlooking the River Mersey, the apartments enjoy an abundance of natural light, with waterside views, providing a luxury lifestyle in the city’s most inspirational location.

As the city’s first Build to Rent scheme, The Keel offers a new approach to private renting in the Liverpool market as the entire development is owned and managed by a single entity, rather than by many different private landlords. Tenants benefit from professional on-site property management and a 24-hour customer help service, meaning quality and management, both short and long term, can be controlled and enhanced. Services such as personal training in the onsite gym, laundry services and apartment cleaning are provided upon request through the Keel Concierge.

New facility set to deliver major business expansion for Hydro Group plc

Buccleuch Property and Moorfield Group (Buccmoor LP) has announced the sale of 0.63 acres of development land at Aberdeen Energy Park to existing occupier, Hydro Group plc.

The site sale has enabled Hydro Group, which designs and manufacturers underwater cables and connectors for subsea, underwater, topside and onshore applications, to expand operations and develop a brand new 13,700 sq ft bespoke workshop, with mezzanine deck.

This will be used to install the company’s new armouring line and also provide a pressure testing area, together with additional storage. This new space is in addition to the 45,500 sq ft already occupied at the park.

This development follows on from the company’s £300,000 investment last year in the advanced armour line, which extended Hydro Group’s product capabilities, enabling the company to offer cable products to improve and support subsea operations.

Doug Whyte, Hydro Group Managing Director, said:

“The new facility and additional space was required in order to diversify and develop our business. The new facility has been a significant investment in the future of our company here at Aberdeen Energy Park and has opened up new business opportunities.

“We are now able to manufacture mechanically protected cables which can withstand higher stresses in subsea and defence operations and the extra space means that we can also offer greater capacity in size and overall lengths.

Hydro Group, an Energy Park occupier since 2008, is currently one of a very small number of companies in the UK to offer this technology.

Speaking on behalf of the parks’ owner, Moorfield Real Estate Fund III, Mark Holmes from Moorfield Group said:

“It is very encouraging to see Hydro Group diversify and expand operations here at Aberdeen Energy Park. We were pleased to be able to facilitate the sale of development land which was available adjacent to the company’s existing facility. We look forward to the business continuing to develop and prosper at the park.

“This trend of diversification into new or complimentary business activities seems to be gathering pace around Aberdeen and the North East of Scotland at the present time.”

Doug Garden, partner of Knight Frank in Aberdeen, who advised Hydro Group added:

“Having project managed the original building for Hydro Group; it was pleasing to be involved once again in assisting Hydro Group with their further growth at Aberdeen Energy Park, with the new facility set to open officially this Spring.”

As well as having sites for sale at Aberdeen Energy Park, Buccmoor is an experienced developer and can tailor bespoke packages to match occupiers’ business needs.

Moorfield has successfully raised a new fund (Moorfield Audley Real Estate Fund – “MAREF”) with £170m of equity to acquire Audley Court Limited – “Audley”, one of the UK’s leading retirement village developers and operators. MAREF has attracted institutional investors from the US and continental Europe and, alongside Moorfield and Audley management, will provide Audley with equity to be used to fund both the existing development programme and support the acquisition and development of new Audley retirement village sites. The investment is expected to enable Audley to double the size of its platform over the next five years.

Audley currently owns 10 villages, which when completed will provide c.1,000 units. Recent sales performance has been strong and off plan pre-sales have already delivered c.60% of the current development program meaning that Audley has now sold or exchanged on c.500 units. Audley is targeting c.2,000 units in its platform by 2020 by developing the land bank on existing villages, which already have planning consents, and from new site acquisitions.

Audley has seen a significant acceleration in its growth trajectory in recent years and based on its pipeline and forward sales is expecting this momentum to continue. Audley sells properties in magnificent settings and then provides country club style leisure facilities, including swimming pools, restaurants, beauty treatment rooms and fitness rooms and discreet on site domiciliary care on demand. Audley’s customers either choose to use the facilities on their doorstep or just enjoy their homes and independence.

Nick Sanderson, CEO, Audley said, “Moorfield and a number of its global institutional investors are recognising retirement living in the UK as a growth market, principally as a result of the significant shortage of retirement housing and because demand is now vastly outstripping supply. Market penetration is less than 1% in the UK, compared with 17% in the USA, and 13% in Australia and New Zealand(i).

Against this backdrop, Audley’s scalable, strong brand and expertise in the sector is well placed to provide the products and services that our customers demand, and this new capital injection enables us to accelerate and deliver our plans. We can now significantly increase the number retirement properties we develop and manage, supported by unrivalled facilities and care services.”

Marc Gilbard, Chief Executive Officer of Moorfield added, “Over the seven years we have worked with Audley we have witnessed first-hand the strength of the Audley offering. We are delighted with the on-going backing of our investors and together we look forward to continuing to support Audley, one of the pre-eminent developers and operators of retirement villages in the UK and therefore ideally positioned to capitalise on the compelling demographics and significant demand for quality independent living options for the older generation.”

The senior housing market in the UK benefits from attractive demographics with a projected increase in people over the age of 65 from 10 million in 2012 to 17 million by 2037(ii). This is combined with around £1.3 trillion in housing equity owned by people aged over the age of 60, of which 96% is un-mortgaged and additionally 58% of property owners over the age of 60 are interested in moving but feel restricted by stock availability(iii).

(i) Housing Learning and Improvement Council: Viewpoint on Downsizing for older people into Specialist Accommodation. Feb 2011.

(ii) ONS data

(iii) Demos: September 2013 Top of the Ladder Report

On behalf of the Moorfield Real Estate Fund III (MREF III), Moorfield Group (Moorfield) announces the purchase of the Shipping Building at The Old Vinyl Factory estate, Hayes from U+I, the new name for Development Securities PLC and Cathedral Group

The landmark building is a seven-story multi-let office building let to seven tenants totalling 96,700 sq ft. Whilst the original structure dates back to the 1920s, the building was comprehensively refurbished in 2002 and was the former headquarters of EMI. Present tenants include SITA, SONOS and CHAMP Cargosystems (UK) Ltd.  The Shipping Building forms part of The Old Vinyl Factory site and is now being extensively regenerated by U+I.

Planning permission for this mixed-use £250m scheme was granted in 2013 and is set to transform the site with 630 new homes, 750,000 sq ft of commercial and leisure space – including offices, restaurants, and retail, bringing 4,000 much needed jobs back to Hayes. The introduction of Crossrail will also benefit Hayes, allowing the town to close the gap with the West London market.

Marc Gilbard, Chief Executive Officer of Moorfield said:

“This is a really interesting opportunity as The Shipping Building is a key component of the wider 17 acre Old Vinyl Factory masterplan and only 200m from Hayes Crossrail station due for completion in 2018. Crossrail is a game changer for Hayes and to be part of West London’s most exciting regeneration project will allow us to deliver Grade A space in an increasingly under supplied market.”

Richard Upton Deputy Chief Executive of U+I said:

“Since first acquiring the site in 2011, we have taken great care to rediscover its past as well as make great plans for its future. We have paid attention to the heritage and former significance of the site, so that it can once again become a place full of life.”

Located on Blyth Road in Hayes, the site is 14 miles west of central London, 4 miles from Heathrow Airport, 1.5 miles to junction 3 of the M4 and 10 miles from junction 16 of the M25.

Hayes and Harlington Railway Station is a 5 minute walk; providing services to Reading, London Paddington and into the Heathrow Terminals. Hayes and Harlington station will be a Crossrail station (operational from 2018) providing services to Bond Street, Heathrow Terminals 1,2 & 3, Liverpool Street and Canary Wharf.

On behalf of the Moorfield Real Estate Fund III (MREF III), Moorfield Group (Moorfield) and Glasgow based joint venture partner Resonance Capital, announce the purchase of Buildings 1, 2 and 3 Atlantic Quay, in Glasgow City Centre from M&G Real Estate.

The purchase is MREF III’s third major acquisition in Scotland in the last two years, following on from the purchases of Aberdeen Energy and Innovation Parks and Quartermile in Edinburgh.

Buildings 1, 2 and 3 Atlantic Quay comprise 280,000 sq ft of high quality modern office space built to a ‘Grade A’ specification. Currently producing a rent roll of £5.5m from a range of occupiers, MREF III paid £60.7m, reflecting an initial yield of 8.54%. Atlantic Quay is a unique office complex that fronts the River Clyde. It is just a short walk from Glasgow’s main shopping, leisure and entertainment districts and accessible to all major road, rail, air and bus links.

Marc Gilbard, Chief Executive Officer, Moorfield, said:

“Atlantic Quay provides us with a significant City Centre office complex at the heart of Glasgow’s International Financial Services District. The modern buildings offer a range of refurbishment, improvement and re-letting opportunities that we will work on together with our joint venture partner, Resonance Capital.”

Angela Higgins of Resonance Capital said:

“We are delighted to announce that we will be moving on site in a matter of weeks. The evolution of Atlantic Quay is now underway and we aim to realise the complexes full potential as a destination waterfront location.”

Ryden and Resonance Capital advised MREF III and Savills advised M&G Real Estate.

Image shows external view of Buildings 1, 2 and 3 Atlantic Quay, Glasgow.

Moorfield Group, the real estate private equity fund manager, has completed the acquisition of the mixed-use Riverlights scheme in Derby for £16.5 million, representing a yield of 10%. The asset has been bought out of administration.

Extending to 199,008 sq ft including four upper floors, Derby Riverlights comprises a combination of retail and leisure units ranging from 3,600 to 8,000 sq ft, alongside two hotels occupied by Holiday Inn and Hampton by Hilton, and a Genting Casino.

Built in 2010, Derby Riverlights is located on the eastern edge of Derby city centre, adjacent to the intu Derby shopping centre and Riverside Gardens, and acts as a key gateway to the city.

The property incorporates Derby’s main bus station at the rear, which transports some 12 million people to and from the city centre each year.

Robin Matthews, Moorfield Group, said: “We recognised significant potential in Derby Riverlights to deliver a first-class retail and leisure asset. Derby City Council has been extremely supportive of the acquisition and we are working closely with them to provide a complementary offering that enhances the city’s overall leisure and retail portfolio.”

Derby Riverlights is adjacent to the city’s Castleward area, which is currently undergoing a £100 million redevelopment, including delivery of 800 new homes and 34,500 sq ft of commercial space.

The area will be further enhanced through the development of a currently vacant plot to the north, which is part of the city’s masterplan.

Robin Matthews continued: “The proximity of the bus station, Riverside Gardens and the Council House already provides significant footfall and the programme of redevelopment works due to be delivered around the site will further enhance the locations appeal to top-tier leisure and retail operators.”

Home to the global headquarters of Rolls Royce, Derby is an attractive Cathedral City which benefits from its location on the edge of the Peak District National Park and proximity to urban centres such as Sheffield, Nottingham, Birmingham and Leicester.

John Forkin, Marketing Derby, said: “The retail and leisure sector is a key element in the ongoing regeneration of Derby, with over 25 million visitors and £570 million of retail spend recorded every year. Assets such as Riverlights are fundamental in ensuring that we are able to provide the very best experiences to visitors and its enhancement really could help Derby rediscover the river.

“Moorfield is exactly the type of investor we should welcome into Derby, with an exceptional track record in the delivery of mixed-use leisure and retail destinations and I am entirely confident that the future of the Riverlights development is in safe hands.”

Martin Rawson, Derby City Council Cabinet Member for Regeneration said: “We welcome this investment as a real vote of confidence from a noted investor. In the near-term, this helps protect local employment but we believe we will soon see jobs created as new lettings are made. Derby City Council will be working with Moorfield to ensure the environment around Riverlights is improved so as to better welcome people into the riverside area.”

Derby benefits from excellent transport links, with the city centre just seven miles from Junction 25 of the M1 motorway. Frequent direct train services run to London St Pancras from Derby station and East Midlands airport is 10 miles from the city.

Colliers represented the administrators during the acquisition process, with DWF and Rapleys providing legal services and investment advice to Moorfield.

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:

• 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

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.