The Related Companies, the developer and third party fund manager based in New York, has formed an overseas partnership underlining its expansionary intentions outside the US.
Detailing the joint venture to build out UK projects, Related said it was to team up with a British equivalent, Argent Group, for a partnership called Argent Related.
Together they will focus on developing open-market and affordable housing, offices, retail leisure and hotels in mixed-use and residential developments. In a statement, Related said: “Drawing on Related’s extensive experience in build-to-rent developments and strong management capability in the US, the venture will place a distinct focus on purpose-built rented homes, where the company sees great opportunity in the market. Argent Related is also committed to providing workspaces for the next generation of businesses and office users, all located near significant new transport hubs and offering environments which work as real places for communities.”
Already Related has issued a strong statement towards its presence in London. It is hoping to capture a scheme to develop a large regeneration around the Euston area alongside developer Syndey & London Properties, though bidding for The Euston Regeneration Partnership is yet to commence.
This latest announced joint venture is to work on projects that are not necessarily in central London, however. Kenneth Wong, chief operating officer and director of international development, and now joint chief executive officer of Argent Related said, “Related has been focused on the London market for several years and we are thrilled to partner with the UK’s leading regeneration developer to jointly pursue new opportunities there. We recognize that real estate is a local business, and through Argent Related we look forward to applying the extraordinary capabilities of both companies to the UK, starting in greater London.”
Its partner, Argent, has been developing city center schemes for 30 years. For example, it has finished regeneration developments at Brindleyplace in Birmingham, Piccadilly Place in Manchester, and King’s Cross in London. For its part, Related has been developing in the US for more than 40 years and has also worked in the Middle East. Completed projects include Time Warner Center in New York, CityPlace in West Palm Beach and significant developments on Al Maryah Island in Abu Dhabi. Related is also currently developing the largest private development project in the US – the $20 billion Hudson Yards project on Manhattan’s west side.
As PERE reported in October last year, the firm is also currently in the process of raising its second opportunity fund since debuting with an opportunity fund that closed on $825 million in January 2012. The company branched out into third-party management in 2010, when it launched the Related Distressed Opportunity Fund I and comfortably broke through its $750 million target. The firm also manages a $250 million construction loan fund with labor unions; a $500 million multifamily fund, which is fully invested; a credit platform venture with High Bridge to originate debt; and a $310 million multifamily fund with New York City public pension plans. In addition, as PERE revealed last June, Related has an energy-related real estate strategy in the works. It is targeting $300 million to capitalize on the surge in energy exploration and production in the US.
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