Frogmore secures £83m First Close for FREP 4 – Property Week 11th October 2019

Frogmore has raised £80m in a first closing for its latest UK-only, value-add fund, Frogmore Real Estate Partners IV.

The private equity firm, which has a £400m fundraising target for the fund, is understood to have raised the equity from two North American investors.

The fund is expected to follow a similar strategy to that of previous vehicles, which invested in properties needing asset management in a range of sectors.

Frogmore raised nearly £400m for its third fund in 2015. The fund acquired a broad range of assets including the mixed-use Notting Hill Gate scheme, which Frogmore bought for £215m in 2015, and Stratford Shopping Centre in east London, which it bought in 2017 in its 300th deal.

On behalf of its third fund, Frogmore also teamed up with Innovative Aged Care to assemble a portfolio of four sites in central London for high-end dementia care schemes.

The fund has already made some notable disposals, including Weston House in Midtown, which it sold to Sidra Capital for £94m last year. Frogmore bought the building for £60m in 2015 and refurbished it.

The fund also forward-sold 2 Millharbour, which it had held in a joint venture with Cain International and Galliard Homes, to Greystar in 2016 after gaining planning permission for 900 homes.

The firm has typically raised the bulk of its capital from North America but the third fund had a broader investor base, attracting Asian capital for the first time.

In a 2016 Property Week interview, Frogmore Chief Executive Jo Allen said the firm would look to continue expanding its investor base.

Frogmore declined to comment on its plans for the new fund. 11th October 2019

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