Benson Elliot Capital Management has made its first acquisition in the UK for a fund launched before the credit crunch.
The pan European private equity real estate firm has bought mixed use property CBXII, Midsummer Boulevard in the UK city Milton Keynes for £20.6 million (€23.3 million; $31million). The seller was CASPAR Fund, managed by Henderson Global Investors, while the deal reflected an initial yield of 10 percent.
The firm said in statement, its Benson Elliot Real Estate Partners II fund had made the investment. The vehicle, which was launched in 2006, has already invested in France, Germany, Spain, Scandinavia, and Central Europe.
Phil Irons, partner and head of UK investment, said the price it had paid was well below replacement cost, and that it had acquired the building at an attractive yield.
Marc Mogull, Benson Elliot’s founding managing partner added the firm was “mindful” that past excesses in the real estate market had yet to work their way through the (financial) system. “We’re focusing on investments that offer sustainable value today and the opportunity to enhance value over time,” he said.
Since raising Benson Elliot Real Estate Partners II, the firm has closed Benson Elliot Real Estate Partners III. That fund raised €505 million in 2009.