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Crosstree Real Estate Partners case study | Real Estate Fund

Reported by Investec
Dec 6, 2022· 2 min read
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Key Takeaways
  • • Crosstree Real Estate Partners successfully raised £490 million for Crosstree Real Estate Special Situations Fund III, a UK-focused opportunistic real estate fund managed by the London-based firm founded in 2011.
  • • The firm secured £772 million in financing for the One Nine Elms development in London, with White & Case providing legal advisory on the transaction, demonstrating significant capital deployment capability.
  • • Crosstree acquired a portfolio of 11 multi-let industrial assets across the UK from BlackRock, with Jones Day advising on the transaction, reflecting the firm's active deal execution in the industrial property sector.
  • • Crosstree combines private equity investment discipline with local UK market expertise, positioning itself as a versatile capital provider across property-related assets and real estate opportunistic strategies.
  • • The firm's Finance Director Ryan and broader team successfully attracted investor commitments to back the real estate private equity fund, indicating strong institutional confidence in the firm's investment thesis.
Summary
Crosstree Real Estate Partners, a London-headquartered private real estate investment firm founded in 2011, has demonstrated significant fundraising and deal execution capability through multiple high-value transactions. The firm successfully closed a £490 million fundraise for Crosstree Real Estate Special Situations Fund III, a dedicated opportunistic real estate fund targeting the UK market. This capital raise reflects strong institutional investor appetite for the firm's investment strategy, which blends private equity acquisition discipline with deep local market knowledge.

The firm's deployment activity confirms active capital utilization. Most notably, Crosstree secured £772 million in financing for the One Nine Elms development in London, a flagship transaction advised by White & Case on the financing structure. Additionally, the firm completed the acquisition of a 11-asset industrial portfolio across the UK sourced from BlackRock, with Jones Day providing transaction counsel. These deals underscore Crosstree's operational focus on both value-add opportunistic strategies and portfolio-scale acquisitions within the UK property market.

Crosstree's positioning centers on providing flexible, opportunistic capital across property-related assets while maintaining a disciplined investment approach. The firm's Finance Director, Ryan, led the fundraising efforts for Fund III, attracting commitments from institutional investors. The combination of successful capital formation and executed transactions at substantial deal values demonstrates the firm's credibility with both capital providers and major sellers, positioning Crosstree as an established player in UK real estate private equity and special situations investing.

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Investec Crosstree Real Estate Partners case study | Real Estate Fund