Lone Star buys £1bn portfolio from Moorfield

Caitlin Morrison
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FUND manager Moorfield Group has sold a real estate investment portfolio to Lone Star for £1bn.

The diversified portfolio is made up of traditional real estate investments, such as retail and office blocks, as well as alternative real estate investments, like hotels and residential and student accommodation.

Moorfield will continue to act as asset manager, alongside Hudson Advisors, to “ensure there is continuity of asset management initiatives, asset knowledge and stakeholder relationships”.

The deal saw Moorfield Real Estate Fund (MREF), which was raised in 2005, and MREFII, which was raised in 2007, exchange contracts with Lone Star Real Estate Fund III.

Marc Gilbard, chief executive of Moorfield, said: “This is the largest transaction that Moorfield has undertaken in its corporate history and is a very effective way for MREF and MREFII to realise the majority of their investments. We are very pleased with the investment performance this will give to our investors and it allows us to focus on optimising the value of the remaining assets in these funds together with investing our recently raised MREFIII.”