Independent investment management company Nevastar Finance and property and finance company Nexus Group have launched the Pine II fund, which is focused on the acquisition of real estate properties leased to early year operators, special needs schools and other educational establishments.
The Pine II fund is a sub-fund of the Luxembourg-based Goldcrest Fund II S.A. SICAV-RAIF.
Pine II is reserved for well-informed investors and will have a similar investment mandate to the earlier Pine I fund, which Nexus Group developed with Electra, before its sale to the Universities Superannuation Scheme in 2017.
The first closing of the Pine II fund has raised equity of £24.3 million, which, together with leverage, will enable the fund manager to assemble a portfolio of some £50 million. A further closing is planned for later in the year.
Ian Griffiths has rejoined the Nexus team of the Pine ll fund, having previously worked with Nexus on the Pine l fund.
Nexus Group managing director Harry Hyman said: “My prior experience with the Pine I fund has given me an appreciation of the qualities of this asset class and my aspiration is to create a specialist educational real estate vehicle which one day might be listed as a REIT.”
Griffiths added: “I have worked with Harry on various projects for nearly 25 years and the Pine ll fund represents an exciting opportunity to develop another property fund alongside Nevastar Finance.”
Stan Rotman, chief executive of Nevastar Finance, commented: “Our clients entrust us with their liquid portfolios, but they also expect us to find attractive illiquid investment opportunities. We have successfully invested in Ireland, Germany, Greece, and we believe the time has come to invest in quality real estate in the UK. We are delighted to have teamed up with the Nexus Group in order to bring to life the Pine II fund and to address the British educational real estate sector.”
Hyman founded Primary Health Properties in 1995. The company was listed on AIM in 1996 and has grown into a FTSE 250 company with a portfolio of more than £2.5 billion and a market capitalisation of close to £2 billion.
Date published: 1 July 2021