Real Estate Fund Management

Pacific's management and businesses founded by Pacific have developed more than 6 million m² (65 million ft²) of real estate assets globally, across multiple sectors. The management team has experience in direct investments, development, private funds, property companies (private and quoted), take-privates, mezzanine finance, property derivatives and asset-backed operating companies. The Pacific team members come from multi-disciplined backgrounds with the skills and resources required to source, structure and execute transactions as well as maximise returns through value enhancing asset management, sophisticated deal structuring and implementation of exit strategies.

The following is an overview of the real estate investment businesses launched over the last four decades:

  • London & Edinburgh Trust PLC – listed on the London Stock Exchange with a focus on real estate development;
  • Portfolio Holdings – established to exploit cyclical opportunities in the UK real estate market;
  • Property Mezzanine Partners – established to bridge a funding gap in the UK property debt markets;
  • AIG French Property Fund – established to exploit opportunities in the French property market;
  • Europa Capital Partners – established a pan-European real estate opportunities investment manager;
  • Alpha Real Capital – established a pan-European (excluding UK) and an Indian (now global) real estate fund management platform;
  • Pacific Real Estate Capital Partners – established a global real estate fund management platform including direct and indirect real estate products;
  • Trinity River Developments - established a joint venture with Starwood Capital to exploit a cyclical opportunity in the Dublin residential real estate market.

Track Record

INVESTMENT VEHICLE LAUNCH DATE STRATEGY AGGREGATE VALUE OF TRANSACTIONS EXECUTED IRR MONEY MULTIPLE
London & Edinburgh Trust PLC 1971 Global real estate £925 million 44% [1] 9.8x
Portfolio Holdings 1993 UK real estate £150 million 35% 3.2x
Property Mezzanine Partners 1995 UK real estate £178 million 23% 1.8x
AIG French Property Fund 1998 French real estate €754 million 22% 1.7x
Europa Capital Partners (Europa Fund I) 1999 European real estate €1,515 million 10% [2] 1.5x
Alpha Real Capital 2005 Global real estate €730 million 155.9% 13.2x
Trinity River Developments 2013 Dublin prime residential €32.1 million 89.5% [3] 2.9x

Notes:
[1] IRR from IPO in 1983 to sale in 1990: includes 88% ownership of LET Pacific.
[2] The 10% IRR represents the forecast return of the fund which has fully realised twelve out of fourteen investments made.
[3] IRR represents combined Pacific and related party returns.


Current

Fontana

An opportunity was identified in 2015 to acquire one of the last pieces of prime residential sites in Marbella. Situated at the highest point within the distinguished Cascada de Camojan estate, Fontana is a collection of five new, architecturally curated villas. Designed by renowned architect Torras y Sierra, the villas are an ode to classic elegance, but ushering in a new, contemporary era by creating something alternative to the Marbella market, with guide prices starting from around €7 million.


JLB Property Developments

JLB Property Developments was formed in 2013 as a joint venture between Sir John Beckwith and local Chiswick developer Reuben Spiring to acquire and refurbish prime London residential family homes. Focusing on West London, the business has acquired 3 properties and has completed on two developments. The business aims to acquire residential units where value can be added through loft conversions and basement additions. The business is now looking to expand its operation to other forms of residential units such as small space living. For more information please visit the site here.


Keyrock Capital

Keyrock Capital is the Principal and Joint Venture Spanish residential development arm of Pacific Investments focussing primarily on Barcelona and Madrid. Spain is recovering from an extended period of recession and is now showing strong growth, ahead of it’s EU peers. Our strategy is to acquire distressed properties or development sites in excellent locations and convert them into high quality apartments or villas for sale to the international and national market. Pacific Investments has extensive experience of property development in Spain, having developed over 50,000 m2 in Madrid, Barcelona and Marbella over the last 20 years.


Mortar Capital

Mortar Capital is the Principal and Joint Venture residential development arm of Pacific Investments. Mortar Capital specialises in developments in Greater London and key cities across the UK. Typical equity deal sizes are between £500,000 to £10m with a term length of between 12 to 36 months. Mortar has an outstanding track record within the Pacific Group, who have over 40 years experience in the sector. Pacific has developed more than 65 million sq ft of real estate globally, across multiple sectors. Mortar’s sister company, Zorin Finance has grown to become one of the leading providers of alternative finance for UK property development and investment market, having originated over £1.5bn of loan requests and lent over £100m since inception in 2011.


Pacific Industrial & Logistics

Pacific Industrials & Logistics REIT plc was founded in 2016 and established as a closed-ended investment company to invest in UK based industrial and logistics properties, with a view to delivering attractive income and capital returns to its shareholders. Pacific Industrials & Logistics was listed on the AIM London Stock Exchange on the 13th April 2016. The investment strategy is focused on smaller, single let industrial and logistics properties in key geographical locations servicing high quality tenants. They have acquired 11 properties to date, close to the M1 motorway and the "Golden Triangle" area around Bardon, Northampton, Bedford and Dunstable for £27 million. The 11 properties make up 465,416 square foot of industrial and warehouse accommodation. Investment returns will be generated by quality stock, asset management and a strong occupational market.
Visit the site here.


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ZORIN FINANCE

Founded in 2011, Zorin Finance has grown to become a leading provider of alternative finance for the UK property development and investment market. Its stretched senior debt and bridging finance products are available across England and Wales from £250,000 to £50,000,000 and for up to 24 months. Zorin's management and advisory team have an outstanding track record in both property development and alternative lending, enabling them to provide tailored and highly competitive financial solutions for their clients. Experience, transparency, flexibility, speed and reliability are the key attributes that define the business.
Visit the site here.


Realised

LONDON & EDINBURGH TRUST

London & Edinburgh Trust PLC (‘LET’) was formed in 1971 and listed on the London Stock Exchange in 1983 with a market capitalisation of £27 million. LET grew into a leading international property development and investment company, with interests throughout the UK, continental Europe, the United States and South–East Asia. In 1990, LET was acquired by a Swedish pension and life assurance company, SPP Försäkringsbolaget, for £510 million as a platform for its global real estate asset management operation.


 

LET PACIFIC

In 1987 London & Edinburgh Trust PLC acquired an 87% interest in a quoted Hong Kong property company which was subsequently renamed LET Pacific. The Company followed a strategy of trading mature assets to reinvest in new development and refurbishment opportunities in Hong Kong and the wider Asia Pacific region. The Hong Kong property portfolio included interests in the Bank of America Tower, Dragon Seed Building, Magazine Gap Towers and Pacific Heights.


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ALPHA REAL CAPITAL

Alpha Real Capital brought together an experienced international real estate investment, finance and fund management team focused on delivering value–added real estate investment opportunities to investors around the world. The business combines international real estate experience and financial markets expertise with original research and local market knowledge to identify and extract superior returns for investors. Pacific reduced its holding in Alpha to a nominal interest across two transactions in 2009 and 2010.
Visit the site here.


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EUROPA CAPITAL

Europa Capital is a pan–European real estate investment management business. To date, Europa Capital has invested over €2 billion in a variety of transactions across 11 countries within Europe, ranging from substantial single assets and portfolio acquisitions to buy–outs. Europa Capital invests on behalf of over 70 international investors drawn from North America, Europe, the Middle East, the Far East and Australasia.
Visit the site here.


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PORTFOLIO HOLDINGS

Portfolio Holdings was established in 1993 to exploit cyclical opportunities in the UK commercial real estate market. Its acquisition strategy primarily focused on portfolios, significant single assets and landmark properties, development, refurbishment and management opportunities. The business joint ventured with financial partners including Apollo Real Estate, GE Capital Corporation, Deutsche Bank, Pelham Partners and Goldman Sachs’ Whitehall Fund. The total fund size was £150 million and was ultimately sold to Apollo Real Estate (Now AREA Property Partners). The investment generated an IRR of 35% and 3.2 x equity multiple.


 

AIG French Property Fund

The AIG French Property Fund was established in 1998 and was co–sponsored and jointly managed with AIG Global Real Estate Investment Corporation. The Fund invested €754 million in eleven commercial real estate transactions in Paris. Investors received an IRR of 22% and 1.7 x equity multiple.


 

PROPERTY MEZZANINE PARTNERS

Property Mezzanine Partners was established and launched in 1995 with, amongst others, Electra Partners. The Fund provided mezzanine finance for investment into commercial real estate, most notably in Manchester’s landmark building, Piccadilly Plaza. The Fund executed transactions with a total value of £178 million generating an IRR of 23% and 1.8 x equity multiple.


Pacific and York

In the years post the 2008 credit crunch, the UK housing market saw major volatility as a result of the banking crisis. Property prices were driven markedly downwards in parallel with market confidence. Against this backdrop, in early 2010 Pacific formed a new company, Pacific and York, to acquire blocks of newly built apartments at significant discounts to their open market value. These apartments were let on AST's generating double digit yields. After a holding period of 5 years, the units along with their freeholds were sold either as a block to institutional investor or as individual units in the open market.


Pacific Investments Asia

Pacific Investments Asia is a joint venture established to invest in real estate opportunities in South East Asia. It developed distribution warehouse near Bangkok, Thailand for Unilever under a long-term lease and at 45,000m² this was the largest such warehouse in South East Asia at the time of its development. A second 60,000 m² warehouse was completed and leased to Unilever in 2014.


Trinity River Developments

As a results of the Celtic Tiger that hit Ireland in 2007, Pacific identified an opportunity in 2011 to buy distressed residential land in Dublin at heavily discounted prices with a view to building houses. Being the first major acquirers of land after the crash enabled Pacific along with it's JV partner Starwood Capital to acquire 3 sites covering 8 acres, all with various planning outlines. The strong rebound in land and house values meant that all 3 sites were sold off before development began, generating an IRR in excess of 80%.


Red River USA

In 2011 Pacific started Red River USA LP, a partnership designed to acquire single family houses from foreclosure auction sites in the suburbs of Miami, USA. Overall 30 homes were purchased and subsequently refurbished and once tenanted generated double digit yields. The houses were held for 2 to 3 years and gradually sold off after significant capital appreciation.


Lennox Gardens

In 2011 Pacific Investments simultaneously acquired five off market apartments in Lennox Gardens with the vision of creating one stunning triple lateral apartment in excess of 5000 sq ft in arguably one of London’s most desirable addresses. The project took over 2 years involving complex license negotiations with three different freeholders, the enfranchisement of two of the apartments, multiple planning applications, extensive discussions with listed building control and meticulous attention to the overall build quality and finish. The result is a beautiful apartment with phenomenal entertaining space valued in the region £25 million. Pacific decided to hold the asset, refinance and rent out on a two-year term for £15,000 per week reflecting a market leading 3.1% gross yield. The development margin equates to circa 60% profit on cost providing a projected gross profit on exit in the region of £10 million. Tristan Parker and Penna Property Partners worked alongside Pacific Investments to help achieve the above.


Gatti House, The Strand

In 2013 Pacific Investments and Penna Property Partners entered into a joint venture with Enstar Capital to acquire 410 Strand, London WC2. The Grade 2 listed building had previously been home to an amusement arcade with a language school on the upper parts. Planning consent was obtained to convert the building into 4 magnificent apartments in excess of 5250 sq ft with A3 usage on the ground floor pre-let to Byron Burger. Further planning gain of an additional 20% was subsequently achieved along with approval for 89 non material amendments enhancing the layout of the units and scheme as a whole. The design required enormous imagination given the existing floor plates and Grade 2 listing however the final scheme used this to our advantage by creating a mixture of unique apartments in both classic and soft contemporary styles. The apartments were sold during the first half of 2015 achieving record prices for the Strand despite a cooling market. The deal provided a profit on cost of 61% delivering a return on equity of 117% and an IRR of 40%.