Moorfield raises £270m for UK value-add fund

Moorfield raises £270m for UK value-add fund
Marc Gilbard, CEO of Moorfield Group

Moorfield Group has raised £270 million in a first close of its fifth value add fund, Moorfield Real Estate Fund V (MREFV).

The capital has been raised from investors based in Europe, Japan and the US. With appropriate gearing, the fund will have initial investable capital of c.£650 million.

”Achieved against the backdrop of the pandemic, this first close is the latest endorsement of Moorfield’s enviable track record, particularly in the operational real estate sectors where it has consistently been among the first to recognise the potential of emerging sectors, as well as cementing its position as a market leader in sustainability,” said Moorfield in a statement.

This first close further demonstrates the renewed international investor appetite for the UK and real estate sectors that are expected to benefit from demographic drivers, societal shifts and technological disruption, the company said.

The fund will employ a value-add risk/return approach, seeking both capital growth and inflation-linked income returns, targeting supply/demand imbalances in the residential-for-rent, student accommodation, healthcare, logistics and self-storage sectors.

Moorfield will employ its operational expertise and focus on design, sustainability, technology and community engagement to enhance the customer experience and asset value. The fund will be operated in line with Moorfield’s 2030 Net Zero Carbon commitment.

MREFV will fund development, pursue portfolio creation and will reposition existing assets through active asset and operational management to create investments with institutional appeal. The primary geographic focus will be on London and the UK’s largest regional cities, which are benefitting from infrastructure investment and the levelling-up agenda, as well as employment and population growth.

Marc Gilbard, CEO of Moorfield Group, commented: “Demographic shifts, environmental needs, technological progression and changing customer expectations are all trends disrupting existing real estate and leading to the emergence of new opportunities to create real estate that is fit for purpose. This is true of all the sectors of focus for MREFV and we will be able to draw on our UK focus and considerable experiences, both in asset and operational management, to achieve our goals.

“We will be continuing with the strategies and partnerships established across our prior Funds, as well as evolving our approach to remain at the vanguard of innovation and thereby deliver the value-add returns offered to our investors. We will navigate our way through the coming pandemic recovery period, mindful of the changing economic environment and the risks inherent at such times. We remain very appreciative of the trust and support of our existing investment partners and also look forward to welcoming some new ones.”

Charles Ferguson Davie, CIO of Moorfield Group, commented: “This successful First Close of our fifth value-add Fund reflects the confidence our investors have in our ability to create value-add returns in our selected investment themes whilst investing capital responsibly and in line with our Net Zero Carbon commitment. The disruption that sustainability and climate change has brought requires foresight into a net zero world in order to both protect and create value in real estate. Moorfield is now benefitting from all the infrastructure we have put in place over past years to attract an increasingly climate and trend aware, global investor base. In addition, investors have been attracted by our track record in the ‘beds and sheds’ sectors and our focus on non-traditional real estate sectors where income growth is correlated with inflation.”