Hillview Real Estate (HRE), the property division of The Hillview Group (THG), has launched its second regional UK office fund, Hillview Partners Property Fund II (HPPF II).
This follows the £30 mln (€34 mln) raise and full investment of its first fund last year in multi-tenanted regional offices across key cities in the UK.
Coinciding with the launch of HPPF II, HRE announced its first acquisition for the fund with the £7.5 mln purchase of Great Western Court in Bristol (GWC). The 37,200 ft2 (3,500 m2) multi-let estate comprises four detached office buildings which will form part of the HPPF II portfolio.
'The acquisition of GWC and recent launch of HPPF II confirms HRE’s long-term investment strategy of achieving capital growth by repositioning well-located properties and implementing proactive asset management initiatives to capture the strong occupational demand,' said Nadav Livni, managing director of THG.
'Despite uncertainty surrounding the Brexit process, our first-hand experience of interacting directly with tenants indicates a resilient domestic economy, with strong underlying growth in the core sectors of manufacturing, technology, engineering, pharmaceutical, financial services, aerospace and automotive,' Livni added.
'Our growing portfolio of regional offices provides flexible accommodation and lease terms to both established, multi-national enterprises and high-growth SMEs providing support services to those core sectors.'
Specialist asset manager ICG-Longbow, which also provided funding to HPFF I, is supporting HPFF II with senior debt finance.
With a combination of debt and equity capital, HPFF II is targeting acquisitions of over £100 mln, specifically well-located, institutional quality regional offices in markets with proven occupational demand, including value-add opportunities or part-vacant buildings.
'We are delighted to continue to support The Hillview Group with senior debt financing for this new acquisition, which we view as a great fit for our mid-market focused lending approach,' said David Mortimer, head of senior debt at ICG-Longbow.
'Our provision of a committed war chest facility offers Hillview certainty of funding for future acquisitions and we look forward to building on our longstanding relationship as they continue to grow their portfolio.'