The partners of Brockton Capital are to transform their business from a fund manager to a more traditional real estate company.
Led by David Marks and Jason Blank, they have formed a new firm called Brockton Everlast which has raised an initial £340m of equity from Tel Aviv-listed Alony Hetz Properties and Investments.
This is expected to see Brockton move down the risk curve more towards core plus strategies and away from higher risk opportunistic investments. It is likely Everlast will hold assets for longer than Brockton has done traditionally and focus predominantly on prime “forever assets” in Greater London. The new company is due to start investing late this year or early next year.
It is currently undetermined if Brockton Everlast will also utilise equity from other funders. In the US, AHP has formed joint ventures with the likes of JP Morgan and Oxford Properties when investing.
AHP was one of a small number of institutional investors which backed the establishment of Brockton Capital in 2005 and is a significant investor in each of its three funds, which the Brockton partners will continue to manage to their full maturity.
Brockton’s three funds have raised more than £1.5bn of capital since the manager’s formation. There are only a few assets remaining from its first two funds, but its third fund, which closed with £860m of equity in February 2016, is still highly active.
It has deployed almost all of its capital but is still investing in its existing ventures such as its largely freehold-backed co-working business FORA and it has already returned substantial cash to investors through sales such as its £560m deal with Blackstone for a 130-asset industrial portfolio last summer.
Rothschild advised on the establishment of Brockton Everlast. Deloitte advised AHP.
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