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CITIC Capital and Cindat in $155m London resi deal

The two Chinese investment management firms have jointly acquired a majority stake in 60 Curzon Street from a fund managed by Brockton Capital.

Cindat Capital Management and CITIC Capital have officially formed a joint venture partnership to acquire a majority stake in a luxury residential development project in London. The total equity size of the investment is understood to be $155 million.

The two Chinese investment management and advisory firms have purchased a 70 percent stake in 60 Curzon Street in London’s Mayfair district from a fund run by the London-based investment manager Brockton Capital.

The name of the fund was not disclosed. However, according to reports in the UK press, this 32-apartment development project – estimated to be worth around £600 million (€759 million; $866 million) upon completion – is the last remaining asset in Brockton’s first private equity real estate fund that reportedly closed on £135 million equity in 2006. The fund’s investors have allowed the firm to extend the fund life so that Brockton can retain the remaining 30 percent interest and see the project through to its completion.

The investment marks Cindat Capital Management’s debut deal in London.

“We are very excited to have the opportunity to co-develop, together with Brockton Capital, such a high-quality project in London,” said Greg Peng, chief executive officer of Cindat Capital. “We have taken part interests in many great projects in other parts of the world, but this is our first in London. We like the London market very much and believe we can undertake many more investments here in the near future.”

Jason Blank, co-managing partner of Brockton Capital further added: “Brockton Capital is very pleased to have formed this joint venture with Cindat and CITIC Capital. This arrangement allows the investors in the Brockton Capital fund to continue participating in an investment that has involved assembling the site, buying-in the freehold and obtaining planning consent.”

According to the release announcing the joint venture partnership, Brockton Capital, Cindat Capital Management and CITIC Capital have secured debt financing from Deutsche Bank, Bank of China and United Overseas Bank for the development project.