Former executives of New York-based WP Carey have announced the launch of a new firm, Northcliffe Asset Management, to invest in the growing global market for real estate sale-leaseback investments.
Former executives of New York-based WP Carey have announced the launch of a new firm, Northcliffe Asset Management, to invest in the growing global market for real estate sale-leaseback investments.
Gordon DuGan, former CEO of WP Carey, is executive chairman and managing partner of Northcliffe. He is joined by three other former WP Carey executives: Benjamin Harris, former head of US Investments; Alistair Calvert, former head of the London office and Michael Heal, from the investment department of the London office.
DuGan said that the four intend to build Northcliffe into the best-in-class global investment manager for sale-leasebacks and net leased investments. 'We expect to benefit from extraordinary opportunities available in the current economic climate. Companies are climbing out of a period of turmoil, with liquidity and capitalization their primary concerns. They are looking at a variety of financing alternatives, such as sale-leasebacks.'
Commenting on the fund raising side, DuGan added: 'We are also seeing unprecedented interest from investors as virtually no other real estate strategy offers the risk-adjusted cash returns of sale-and-leasebacks in this environment. The European team already manages a successful net lease portfolio and is actively investing, the US team will begin shortly.'