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Curzon, Mountgrange buy £139m UK portfolio

The pair have teamed up to acquire a package of 28 assets. It is the first UK deal by Curzon and affiliate AEW Europe since it closed the European Property Investors Special Opportunities fund on €800 million in May.

Curzon Global Partners and Mountgrange Capital have acquired 28 properties from UK fund manager PRUPIM for £139.3 million (€173 million; $255 million).

London-based Curzon and affiliate AEW Europe is making the acquisition from its €800 million opportunity fund, European Property Investors Special Opportunities, which closed in May.

The 28 assets are 60 percent retail and 40 percent offices in various parts of the UK.  The expected net initial yield on the portfolio is 7.5 percent, Curzon said in a statement.

“This is our first UK transaction positioning our investors to take advantage of the dislocation in the real estate markets stemming from the credit crunch,” said Ric Lewis, chief executive of Curzon. Rob Reiskin, managing director and head of investments, added: “We believe that our attractive entry price, coupled with the defensive nature of the transaction’s cashflows, will help to provide our investors with an excellent risk-adjusted return.”

Curzon, AEW Europe raised its European Property Investors Special Opportunities fund to target opportunities arising from the current dislocation in the UK and Continental European real estate markets.

Mountgrange is a London-based privately-owned property investment and development company, currently in the middle of fundraising for an opportunity fund. It was founded in 2002 by property entrepreneurs Martin Myers and Manish Chande.