Crosstree raises £490m for new fund

Crosstree Real Estate Partners has successfully raised £490m for its new fund, the Crosstree Real Estate Special Situations Fund Ill.

The fundraise took place in August, according to a filing with the US Securities and Exchange Commission (SEC). It marks the largest UK property fundraise this year, as first reported by PERE Magazine.

The amount exceeded the £350m previously raised in 2019. According to PERE, the new fund can make both equity and debt investments.

Founded by former Blackstone director Nick Lyle and former Starwood director Sean Arnold, Crosstree Real Estate Partners was originally backed by Swiss-Italian pharmaceutical billionaire Bertarelli. It has since expanded its investment vehicles to include outside investors.

Crosstree struck a deal last September to acquire The Collective’s Canary Wharf property, which comprises 750 flats, for around £190m from the collapsed parent company’s lenders, revealed by
React News.

It launched a joint venture partner search for its £750m Edmonton Green development in Enfield, north London, after it secured consent for 1,500 homes on a 26 acre site. The scheme is scheduled to be delivered in phases from October 2022, with the second phase beginning in April 2024.

The size of the stake to be sold will depend on market appetite, and any new investor would benefit from the existing income stream from the essential retailing centre. Knight Frank and
Eastdil Secured have been appointed to manage the process.

Crosstree is also currently building One Berkeley Street in Mayfair. It has secured a raft of lettings at the 210,000 sq ft redevelopment opposite the Ritz on Piccadilly.

Lotus Cars and Greek restaurant Gaia have signed for 70% of the retail space at the 210,000 sq ft redevelopment. Lettings have also been agreed for all five floors of office space.

Private equity giant Starwood Capital Group is taking 11,800 sq ft and investment group B-Fiexion Group, which is led by Crosstree’s main backer Ernesto Bertarelli, is taking 34,000 sq ft.

As previously revealed by React News, real estate investment bank Eastdil Secured will move its headquarters to the building after agreeing an 11,800 SQ ft deal.

6 September 2023 | May Agaran | React News