Brockton eyes £1bn UK recap

The London-based private equity real estate firm reportedly is in talks to recapitalise Structadene, which owns 700 properties worth a reported £1 billion.

Brockton Capital, the UK-focused private equity firm, is in talks to help restructure private property company Structadene in a deal that could give it partial ownership of a 700-strong property portfolio said to be worth £1 billion (€1.2 billion; $1.6 billion).

According to Property Week magazine, Brockton is in exclusive talks with Structadene to form a partnership centred on the London firm taking a stake of at least 50 percent in the portfolio and providing future equity to allow the group to carry out a longer-term business plan without the need for further asset sales. The report said Brockton would be involved in the asset management of the portfolio.

The deal, if completed, would occur on behalf of Brockton Capital Fund II, the company’s second UK opportunistic fund, which closed on £500 million (€570 million; $815 million) in commitments in 2010. So far, publicised investments have included: the Mailbox in Birmingham for £127.1 million, with co-investment coming from private retail developer Milligan; the financial backing of European retail specialist Pradera for a venture in the UK; and an investment in Virtus Data Centres, with whom it is looking to expand the platform.

Brockton raised its first fund, Brockton Capital Fund I, in 2006 with £150 million of equity. The firm was not available for comment at press time.