Resolution's fund III to focus on all-cash deals

Pan-European investment vehicle Resolution Real Estate Fund III is shifting its focus to smaller, all-cash deals to complete the fund’s investment programme after buying EUR 300 mln worth of property in the last 12 months.

Fund manager Resolution said the fund's remaining EUR 250 mln of firepower, consisting of equity and leverage, will be used for investments ranging from EUR 15 mln to EUR 75 mln. Resolution is increasingly undertaking all-cash acquisitions, which has led to a growing interest in assets which are smaller than previous deals.

In Continental Europe, Resolution is actively targeting France, Germany, Poland and the Nordic region for primarily retail and residential-led acquisitions. In the past year, the company has purchased shopping and outlet centres in Roubaix, France and Katowice, Poland, in addition to its residential investments in Scandinavia.

In the UK, Resolution is seeking a range of value-add opportunities including office assets in London; retail properties with room for rental growth and mixed-use properties with asset management potential in locations popular with technology, media and telecommunications companies in and around London.

Residential and hotel properties continue to be of interest and Resolution is also keen to explore work-out opportunities with banks and special servicers.

The shift in investment emphasis comes after the fund made significant purchases in Edinburgh, London and Copenhagen in the first months of 2012. Within the last six weeks, Resolution confirmed the acquisition of the 39,000 m² Ocean Terminal shopping centre on Edinburgh's waterfront and 10,200 m² of offices at 15 Bonhill Street in the heart of London's Tech City TMT quarter.

At Mipim 2012, it announced the purchase of Vodroffsvej and Slangerupgade, two centrally located residential properties in Copenhagen acquired in joint ventures with Saxo Properties.

Robert Wolstenholme, director of Resolution, said: 'We continue our active search for asset management opportunities, which in the last 12 months has led to the exchange of contracts on EUR 300 mln of property across the UK and Continental Europe. With a combination of proven asset management skills and a pool of equity from the remainder of our fund, we believe we are well placed to help to unlock properties with untapped potential.'