Grosvenor Group, the privately owned international property group, has completed a new joint venture with High Street Realty Company, the Boston-based private equity real estate investment management company. High Street Realty Company is focused exclusively on institutional quality industrial properties located in logistically significant major markets across the eastern two-thirds of the United States.
Grosvenor Group’s London based Indirect Investment team has formed a 50:50 joint venture with a High Street Realty Company affiliated entity. The $70m joint venture has assembled an industrial portfolio, with assets in Tampa, Chicago and Philadelphia. The joint venture was initially bridge financed by Grosvenor Group prior to the High Street Realty Company entity acquiring its 50% interest.
The joint venture reflects Grosvenor Group’s objective to access strong risk adjusted returns using specialist third party expertise in sectors or countries otherwise inaccessible to the Group’s Operating Companies.
Commenting on the deal, Chris Taite, Grosvenor Group Investment Director, said:
“This has been a complex deal that demonstrates the ability of our team to provide flexible and innovative solutions to investment partners and to access good risk-adjusted returns. In addition to strengthening our relationship with High Street Realty Company, we have secured access to a long term opportunity that provides us with exposure to some high-quality, high-yielding US industrial assets.”
In addition to investing in industrial assets in the US, Grosvenor Group’s Indirect Investment team has also secured exposure to the sector in the UK, through a partnership with IO Asset Management, and in Australia, through a partnership with Propertylink and Goldman Sachs. The Indirect Investment team closed follow-on deals with both of these parties earlier this year.
To date, the Indirect Investment team has invested close to £150m of equity with a variety of specialist third-party managers internationally. Outside of the industrial sector, this included a second joint venture with Propertylink and Goldman Sachs in Australia, which acquired 320 Pitt Street, a 30 story office tower in Sydney.
For more information contact:
Sorrel Basher, Press Office
020 7312 6101
Notes to Editors
Grosvenor Group Limited is a privately-owned property group with offices in 17 of the world's most dynamic cities. We have regional investment & development businesses in Britain & Ireland, the Americas and Asia Pacific. Our international fund management business works in partnership with investors from around the world and has a focus on Continental Europe. We also have an international Indirect Investments portfolio, which is managed from Grosvenor’s London headquarters: it is this part of the Group which has invested in High Street Realty Company.
High Street Realty Company
High Street Realty Company was founded in Boston in 2002 and is a recognized private equity real estate investment management company focused exclusively on institutional quality industrial properties located in logistically significant major markets across the eastern two-thirds of the United States. Since its inception, High Street has invested over $500 million of equity and acquiring over $1.4 billion of industrial properties. With its institutional platform and strong entrepreneurial bias, High Street has attracted capital from leading foreign and domestic institutional investors for both its joint ventures and discretionary investment funds.