Resolution Property, the privately owned investor, is bringing a £3bn war-chest to the London and European markets in a bid to snap up deals in the down-turned market, the Financial Times reported today.
Resolution, run by property entrepreneur Robert Laurence, has raised £600m in equity from European and US investors which, including borrowing, gives him a £3bn spending power.
‘To a certain extent it is a buyer’s market,’ said Laurence. ‘but you still need to take a view on how far the market will fall and hen it will return.
‘We will be led by opportunities to add value, which is not being priced in at the moment.’
The fund’s first purchase will be a 75% stake in the Printworks, a Manchester leisure centre. Resolution, which is backed by US Ivy league universities Yale and Harvard, will pay £20m under the original £120m for the stake.
Resolution joins a number of property names looking to raise substantial pots to take advantage of the slide in values.
Invista RealEstate, Evans Randall, Laxey Partners and London Stamford have a combined spending power of £3.5bn to take advantage of the current financial climate across Europe.