Brand new real estate investment management firm Pure Global Capital (PGC) has launched with a £100 mln (€117 mln) investment in the student housing sector.
PGC, which will focus on joint ventures and capital raising for selected partners, was founded by Jeff Morton, formerly an equity partner at private equity firm Henley Investments.
'We are delighted to have identified and presented a business plan resulting in winning our first mandate to exclusively represent our clients, who are a specialist, student direct let housing provider, seeking to grow market share via a joint venture with selective investor capital partners,' commented Morton.
PGC’s client fund currently has an existing portfolio of four buildings comprising 550 beds. Two fully operational properties represent 200 beds, while a further 150-bed scheme will be delivered by summer 2017, and a 200-unit scheme in Southampton will be ready for the 2018 academic year.
PGC said it intended to seed the business by selling the two cornerstone completed and operational assets for circa £20 mln, as well as forward committing on the 150 unit, £15 mln scheme, due to complete in summer 2017. In addition, the proposal is to forward fund the Southampton 200-bed development of circa £22 mln gross development value due for delivery in 2018 and, in parallel, target an equity raise commitment of around £50 mln for future, identified development opportunities.
'We like the UK alternative sectors and the student housing market offers strong occupational demand, robust income and excellent capital growth prospects. Total returns in this potential partnership are maximised ahead of fund benchmarks from exposure to development profits and provide completed developments plus forward commitments enabling a £55 mln plus investment opportunity,' said Morton. 'This will be attractive to both funds and family offices where the next three years’ capital and income forecasts look low and current sourcing of quality stock and development partners difficult to secure,' he concluded.
Prior to joining Henley, Morton was managing director at BlackRock and head of investment for the £3 bn BlackRock UK Property Fund.
PGC is based London and is also active in the US market with Twin Summits Capital.
