LONDON (Alliance News) - Tamar European Industrial Fund Ltd Monday said it has agreed to a takeover by a new Luxembourg vehicle indirectly owned by a fund managed by US-headquartered real estate private equity firm Starwood Capital Group, in a deal valuing the fund at about GBP53.55 million.
In a joint statement, the two parties said that Lux Starlight, which is being advised by Oriel Securities Ltd, has offered to pay GBP53.55 million, or 38.25 pence a share, in cash for the fund.
Tamar European Industrial Fund shares were Monday quoted up 5.7% at 37.51 pence.
Tamar European Industrial Fund, currently advised by JP Morgan Cazenove and accountancy and business advisory BDO LLP, has been disposing of its assets since 2011 in a move to return capital to shareholders, meaning that the costs of running the portfolio and maintaining its listing will become inefficient as its assets dwindle. With the fund also wary of its exposure to currency exchange rate fluctuations, it has recommended the offer to shareholders.
According to the statement, Lux Starlight, which is indirectly owned by SOF-IX International Holdings LP, in turn managed by Starwood, has already received letters of intent to accept the offer from shareholders owning 43.2% of Tamar European Industrial Fund. This is made up of a 13.4% stake, some 18.8 million shares, managed by Weiss Asset Management LP, as well as a 29.8% stake, some 41.7 million shares, owned by Laxey Partners Ltd, a family office based in the Isle of Man.
Lux Starlight is a special purpose vehicle which has been formed with the intention of forming a new joint venture, MStar Europe, that will invest in the continental European industrial real estate sectors between funds managed by Starwood, including its IX Fund, and M7 Real Estate Ltd. The new joint venture will invest in light industrial real estate assets in Europe, principally in Germany, the Netherlands and France.
MStar Europe will be the second joint venture formed by Starwood Fund IX and London-headquartered M7 Real Estate, following the launch of UK-focused MStar in June 2013. At the time of writing, Lux Starlight is owned by Starwood Fund IX but it is expected that M7 Real Estate will acquire a minority stake in the vehicle through an investment in MStar Europe.
M7 Real Estate is a specialist investor and asset manager of multi-let light industrial real estate in both the UK and Continental Europe. Founded in 2009, M7 Real Estate is headquartered in London, with offices in Glasgow, Amsterdam, Frankfurt, Warsaw and Copenhagen. In addition to its existing platform, M7 will be opening an office in Paris within the next quarter. M7 Real Estate and its subsidiaries are the existing investment advisers to and asset managers of MStar Europe.