Cornerstone Real Estate Advisers LLC declared that it will be expanding its assets in the U.K. buying office buildings and warehouses worth $303 million in the coming two years.
According to Bloomberg, Charles Weeks, the CEO of Cornerstone's Europe operations, said that the company will be buying office buildings in central London and warehouses from small U.K. businesses. The purchases will be made on behalf of the company's clients.
"Cornerstone can buy fundamentally a very good bit of real estate in a great location, but the best-valued assets have a short lease. If you believe in the real estate, then you should still be interested in acquiring the asset because you're confident that you'll be able to extend the lease or attract new tenants," Weeks said in an interview with Bloomberg.
Apparently, Cornerstone will initially buy properties worth $129 to $259 million on its own, without borrowing or pooling any capital. The company is also set to open offices in Germany and France in 2013, seeking to expand its lending and investing activities in the region, reports Pie-mag.com.
Cornerstone laid the foundation of its European real estate debt funds venture sometime in July, 2012. The company hired Laxfield Capital to manage senior loans on behalf of its clients marking its entry into third party real estate business, reports IP Real Estate.
More recently, Cornerstone also announced that its assets under servicing and management had grown by 17 percent in 2012. The profit was a reflection of the company's expansion into Europe and increased investment growth.
"Investors are attracted by our ability to deliver one-stop access to experienced management and high quality debt and equity investment opportunities, both public and private, in the U.S. and internationally. We look forward to continuing to meet our clients' needs by growing our investment platform both organically and opportunistically by acquisition," David J. Reilly, CEO of Cornerstone, said to Yahoo.
Cornerstone Real Estate Advisers LLC is a subsidiary of Massachusetts Mutual Life Insurance Co. and manages assets worth a total of $38.9 billion.
