New Russian-backed fund refinances London office building

Wainbridge Capital Limited (WCL) said on Tuesday that it has raised £50 mln (EUR 57 mln) of equity in the first closing of its debut real estate fund, Wainbridge Global Opportunities London (WGOL). The equity for the value-added was raised from a number of high net worth investors, the majority of whom are Russian nationals.

WCL, a newly established Jersey-based property investment manager, said the investors are seeking to gain exposure primarily to office assets in London and other key real estate markets. All funds are fully discretionary and subsequent closings are expected to bring the fund up to £100 mln (equity), which, when leverage is applied, will give WGOL up to £285 mln to invest.

The value-added fund has made its first investment, with the simultaneous recapitalisation and refinancing of a trophy Croydon office building, No.1 Croydon, Greater London for £31 mln.

The total cost of the fund’s investments is expected to be between £20 mln-50 mln, though the fund may undertake larger investments through co-investment or joint venture structures.

The fund's investment advisor is Wainbridge Limited, a firm established by Rob Rackind and Edouard Fernandez.

Rackind is the former head of Asset Management for Crownstone, Cambridge Place Investment Management's EUR 1.5 bn pan-European value-add office platform. He has also held management positions at Hines, HRO and Meyer Bergman. Fernandez has over 20 years experience in the real estate industry and was previously an officer at Hines, where he helped set up two of the company’s overseas offices in Spain and Mexico.

The fund's investment advisory committee comprises senior industry figures, including Robert Orr, former European CEO of Jones Lang LaSalle, and Seth Lieberman, formerly at Lehman Brothers, UBS and Hypo Real Estate.

WCL intends to launch further future funds, targeting both retail and institutional investors as well as forming joint ventures with investors and developers where attractive opportunities are sourced. It has also already been awarded a number of mandates, including acting as owners' representatives for the majority equity investors of the 37,000 m² Cannon Place development in London, a 8,300 m² office refurbishment in Paris and the development of the new French Lycee school in North London, accommodating 650 students over 5,600 m².