Marc Mogull, former head of real estate at the European Bank for Reconstruction and Development, is to return to the UK property market with a £450m opportunity fund.
Mogull’s Benson Elliot Capital Management has lined up £1.8bn in purchasing power for European property, including the new fund, debt finance and the unspent equity of a previous fund.
Benson Elliot expects the ongoing financial disruptions to create a steady flow of distressed investment opportunities, as many investors seek to reduce their exposure to the sector and property debt reaches maturity. Investors in the property bull market, often using excessive leverage, are already coming under pressure to liquidate assets.
It has a particular focus on the UK, where prices have fallen the furthest. 'We took our chips off the table and have been waiting. Now is the time,' said Mogull.