MiddleCap on the hunt with £190m of dry powder
Private investor MiddleCap has committed to spend £190m on acquiring projects in London and Berlin, although uncertainty over pricing continues to deter the firm from imminent investments.
Tomáš Jurdák, head of real estate at MiddleCap, told EG the investor was “remaining cautious” on making new acquisitions but was still looking for new sites across the capital. The firm has so far invested £150m in sites across cities including London, Berlin and Bratislava, and is also looking to expand into new markets, including Dubai.
The firm also wants to increase its focus on cash acquisitions, in light of the tough climate for borrowing. Expectations around the availability of debt are at their lowest level since the global financial crisis, according to findings published last week by the Urban Land Institute and PwC.
Private investor MiddleCap has committed to spend £190m on acquiring projects in London and Berlin, although uncertainty over pricing continues to deter the firm from imminent investments.
Tomáš Jurdák, head of real estate at MiddleCap, told EG the investor was “remaining cautious” on making new acquisitions but was still looking for new sites across the capital. The firm has so far invested £150m in sites across cities including London, Berlin and Bratislava, and is also looking to expand into new markets, including Dubai.
The firm also wants to increase its focus on cash acquisitions, in light of the tough climate for borrowing. Expectations around the availability of debt are at their lowest level since the global financial crisis, according to findings published last week by the Urban Land Institute and PwC.
Jurdák said the capital’s slowing development pipeline had helped to curb instability, with paused or halted deals reducing spiralling build costs. He said this had also helped speed up development as lower demand for materials had eased supply chain delays.
However, Jurdák said unwavering sale prices, coupled with difficulty in securing debt, were creating a “pricing barrier” for investors in the London market.
Earlier this year, Middlecap signed a deal with the Fishmongers’ Company to bring forward its Seal House development in the City, EC4, having purchased the long leasehold three years ago.
The 12-storey building, adjacent to the Fishmongers’ Hall is set to offer 131,000 sq ft of offices plus 10,000 sq ft of restaurants, external terraces and a rooftop public viewing garden.
The news came after MiddleCap closed deals to acquire two commercial and three residential projects in Berlin.
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Photo by Frank Augstein/AP/Shutterstock
