A 50/50 joint venture between private investor Starwood Capital Group and Tunstall Real Estate Asset Management, a newly formed investment management firm, has acquired Pinnacle Group, which focuses on housing-led regeneration projects across the UK.
Terms of the transaction were not disclosed.
(Pictured: Pinnacle Regen Myatts Field North regeneration project )
Tunstall and Starwood Capital said the acquisition would enable the JV partners to leverage the existing Pinnacle platform to invest in and deliver large-scale regeneration projects in the UK. Pinnacle’s existing senior management team will remain in place.
‘The acquisition of Pinnacle, alongside the existing management team, together with our planned investment into its pipeline of current and future projects, represents a compelling opportunity for us,’ said Roger Clarke, CEO of Tunstall. ‘In partnership with the public sector, we look forward to providing much-needed new homes, as well as the regeneration of communities across London. This is a significant and exciting first acquisition for Tunstall and fits perfectly with our strategy to deploy capital across all sectors of real estate.’
‘This acquisition allows our firm - via Pinnacle’s strong track record of leading public/private partnership-led housing regeneration projects - to invest through an emerging and exciting model to provide housing across all price points and tenures in the United Kingdom,’ added Adam Shah, managing director at Starwood Capital.
Pinnacle specialises in housing-led regeneration projects across the UK in partnership with the public sector. Established over 20 years ago, the company comprises six businesses - Pinnacle Regen, Pinnacle PSG, Pinnacle People, Pinnacle Places, Pinnacle Power and Grain - providing a range of services to create and supply existing and new communities in the UK. It employs around 2,300 people with a turnover for the year ending 31 March, 2017 of more than £90 mln (€102.6 mln).
Lending strategy
Tunstall is a pan-European alternative investment fund platform established in 2016. It works together with associate company M7 Real Estate, a pan-European real estate asset manager. Starwood has also worked with M7 on investments.
EuroProperty - part of the PropertyEU Group - reported at end-May that Tunstall has launched a debt strategy with M7 Real Estate to lend in the Netherlands.
Tunstall Real Estate Asset Management is headed by former Stifel investment banker Roger Clarke and has M7 as a significant minority shareholder.
The business, which was set up last November, is aiming to invest about €100 mln of capital in senior debt in the Netherlands as the first of a number of different investment strategies.
Tunstall has been set up to invest across Europe in strategies across the capital stack – equity and debt and listed as well as private real estate – which don’t compete with M7. Clarke got to know M7 and its chief executive Richard Croft as an adviser to the business in the past.
