Baar-Zug, 22 May 2013
Partners Group, the global private markets investment manager, provided, on behalf of its clients, a real estate mezzanine financing for Heyford Park, a mixed use commercial-residential estate in Oxfordshire, England.
The estate consists of a 1'247 acre site with approximately 1.4 million square feet of commercial space and 312 residential units located one hour drive from London and 15 minute drive from Oxford. Currently approximately 800 people live and 1'000 people work at Heyford Park which operates as a self-functioning town. The Dorchester Group acquired the estate in 2009 and will continue to operate it. The investment strategy focuses on refurbishing the existing residential units, leasing up the existing commercial space and developing approximately 750 new residential units.
Claude Angéloz, Partner and Co-Head Private Real Estate, comments “We are pleased to have identified this attractive opportunity for our clients. The investment provides significant upside potential driven by the expected demand for residential units in the Oxfordshire region and the positive fundamentals of the local economy compared to the rest of the UK. We are also pleased to be working with Dorchester Group, the owner of the site, who have been managing the estate since 2009 and has invested in residential projects around the UK since the early 1990s.”
Paul Silver, Executive Director of the Dorchester Group, comments “We are delighted to have Partners Group on board. Since our acquisition of the site three years ago we have procured full planning consent for the use of 315 let homes on site and 1.4 million square feet of commercial space as well as for the development of 763 new homes. The current refinancing now enables us to move onto the development phase and we have exciting plans to deliver a self-contained sustainable town on the site.”