Starwood Capital, the Greenwich, Connecticut-based investment giant, and Tunstall Real Estate Asset Management, the London-based pan-European alternative investment management firm, have acquired UK housing regeneration business Pinnacle Group in an 50-50 joint venture.
Pinnacle is focused on “housing-led regeneration projects” across the UK in partnership with the public sector, such as local councils. Established over 20 years ago, the firm now employs approximately 2,300 professionals, with a turnover for the year ending March 31, 2017 of more than £90 million ($113.6 million; €101.9 million).
Starwood and Tunstall said they had identified an opportunity to invest significant amounts of capital in large regeneration projects in the UK real estate market.
PERE understands that Pinnacle’s existing senior management team, which will remain in place once the transaction is completed, has co-invested alongside Tunstall and Starwood.
Neither firm has disclosed the price of the acquisition.
“This acquisition allows our firm, via Pinnacle’s strong track record of leading public and private partnership-led housing regeneration projects, to invest through an emerging and exciting model to provide housing across all price points and tenures in the United Kingdom,” said Adam Shah, managing director at Starwood.
“In partnership with the public sector, we look forward to providing much-needed new homes, as well as the regeneration of communities across London. This is a significant and exciting first acquisition for Tunstall and fits perfectly with our strategy to deploy capital across all sectors of real estate,” said Roger Clarke, chief executive of Tunstall.