Date: December 2005
Capital Trust is pleased to confirm the First Closing of Capital Property II Ltd Partnership [“CPLPII”], 5th December 2005, which is their second European Property Fund. This follows the successful conclusion of Capital Property Limited Partnership, the first property fund, which raised total equity commitments of £30.1M. The first Fund made 10 real estate investments all now sold achieving an approx. 15% fund IRR (including 6.25%pa weighted annual coupon) and return of equity of approx. x1.6's over the weighted investment period of approx. 2.1 years.
Capital Trust is seeking total equity commitments of £75m by a Second Closing scheduled for 30 th June 2006. Like the first fund CPLPII will be advised by CapReal, a Limited Liability Partnership and joint venture between Capital Trust Ltd and the Founder Partners Esme Lowe and Nick Judd.
Esme Lowe commented, “this leveraged property fund will be opportunity led providing investors with a portfolio diversifying and asset backed investment and opportunity of capital growth through active management.” He added, “we are delighted that CPLPII has already achieved equity commitments of £27.7m and our track record and experience has proved very valuable to our marketing colleagues.”
Nick Judd commented, “our generic strategy is to actively manage a combination of property assets in order to extract good income and capital value enhancement. We are currently advising the Fund Manager on the acquisition of two UK property assets to pump prime CPLPII. These assets are complimentary in terms of risk, geography, use and income streams for a lower risk profile and are forecast to provide the Fund with a cash on cash coupon of approx. 8% pa.”
CapReal, based in Mayfair, advised on approx. £90m of real estate transactions in 2005.
Capital Trust Group which has offices in London, New York and Beirut has committed £5m to CPLPII.
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