International real estate advisory firm Montague Property has announced the launch of a £100 mln (€113 mln) real estate fund targeting luxury real estate developments worldwide.
The vehicle, known as M Capital, will provide equity and bridging finance for the development of both existing and new real estate projects and will focus on high-yield investments offering returns within a three- to five-year time horizon.
The capital within the fund will be utilised in three ways: firstly, by providing equity to buyers to acquire high-end real estate sites that have already been developed; secondly, by providing equity to developers to develop bespoke new international projects; and thirdly, by providing bridging finance to developers in those markets that lack the UK’s bridging loans infrastructure – including Spain, Portugal and France.
In addition to providing finance to third parties, M Capital will also serve as the investment arm of Mayfair-based Montague Property. This relationship will see M Capital fund and collaborate on a range of developments that Montague Property will manage and ultimately exit.
M Capital has been established by Montague Property founder Thomas Balashev, who will serve as CEO. Balashev will be supported by international property developers Dylan Mitchell (Chief Operating Officer) and Mattias Sandvall (Chief Investment Officer).
South African Mitchell is founder of international real estate agency Worldwide Property Company, focussing on overseas investment properties. Prior to founding Worldwide Property Company, Mitchell was owner of London-based financial services firm Somerset Group Ltd, where he specialised in investments and portfolio management.
Swede Mattias Sandvall started his career at investment bank Nordea Bank, before establishing Sandvall Invest, a London-based property development company specialising in the co-living sector.
The launch of M Capital follows the announcement last month of Montague Property’s international expansion, including plans to expand into the US (Miami, LA), Paris and UAE markets over the next 18 months.