London & Stamford raises another £100m

The London-listed investment management firm has been granted extra funds by existing Middle Eastern partners, and has acquired a distribution portfolio for £123m.

London & Stamford, the London stock exchange listed UK opportunity fund, has been provided with an extra £100 million (€117 million; $160 million) by existing Middle Eastern investors.

The firm, which converted from being a closed ended investment fund to a REIT in October, said today that its joint venture partner Green Park Investments had increased its equity funding in the business.

At the same, the firm said it had bought a £123 million prime distribution portfolio from an opportunity fund managed by Paris-based AEW Europe and London’s Tristan Capital Partners.

London & Stamford’s JV with Green Park hit the headlines in the UK property press last year when it acquired a 50 percent stake in the UK’s Meadowhall shopping centre. After that, the joint venture was left with £80 million to invest. Following the extra commitment, the partners' resources now stand at £180 million.

In the deal, which was announced today, London & Stamford said it was committing £64 million of the cash to acquire the distribution assets – which comprise five units let to tenants including the Metropolitan Police and Royal Mail within the M25 orbital motorway in London.

That deal follows the announcement on 5 November of another acquisition, this time to buy five logistics properties from Alabama, US-based Harbert Management Corporation for £82 million.

London & Stamford said it would combine the two portfolios and refinance the debt early next year, hoping that the assets will provide cash-on-cash yield of 11 percent. It is currently yielding 9.27 percent.

London & Stamford converted from being a closed-ended investment fund to becoming a REIT on London’s senior stock exchange in October. At the same time, it internalised its management.