Brockton Capital held a first close on its second private equity real estate vehicle, raising £400 million (€443.7 million; $600.7 million) of equity, according to PropertyWeek.
The London-based fund manager was originally believed to have been targeting £300 million for the fund, however the report said the vehicle could reach £500 million in a second closing in the summer.
The firm’s debut fund, Brockton Capital Fund I, raised £150 million in 2006, investing in assets such as the London office property at 63 St James's Street in the city’s West End. Brockton sold the property – its first deal in Fund I – in the summer of 2008 for around £38 million to a private client of Citi Private Bank generating IRRs of 68 percent and a 3.5x cash multiple.
Formed in 2005 by ex-Blackstone real estate professional David Marks, and Jason Blank, formerly of Merrill Lynch, Brockton is believed to have garnered commitments from existing LPs, among other institutional investors, including LMS Capital, Hermes and Alony Hetz.