As 2021 commences, it brings us great pleasure to announce some exciting developments at GMG Real Estate (GMGRE).
On 31 December 2020, a deal was concluded that formalised a buyout by CEO, Newman Leech and global wealth manager, Skybound Capital (on behalf of Brook & Brook, an SPV under their management).
Newman and his business partner, Dave Elzas, founded GMGRE as a privately owned investment and property development company. This recent transaction follows a decision by them, to focus their efforts and growth strategies on their respective businesses. Both parties will maintain a close relationship and have already signed a joint venture agreement to exploit mutual opportunities for future growth.
This transaction is marked by a change in the company name to RE Capital.
"RE Capital is synonymous with the core focus of GMGRE which is to invest our own capital as well as that of our clients into opportunities we identify," says Newman.
"We will retain all of our highly successful executive team as well as all our staff and focus our energy and efforts on identifying opportunities where we know we can unlock value. In addition, we will continue developing tailored real estate solutions for our clients - an area in which our team has been extremely successful over the past decade. We will continue to work closely with the GMG Group and to build synergies between the two companies."
Growing the Real Estate Portfolio
Newman and his executive team will focus on continuing the growth of RE Capital's real estate portfolio. It will also capitalise on its joint venture with property developer John Rabie's offshore real estate company, NEWORLD, which offers investment opportunities in Portugal, with plans to soon expand in the United Kingdom, via a joint venture.
RE Capital, GMG Asset Management (GMGAM) and GMG Institutional Asset Management (GMGIAM) have already undertaken a multi-faceted joint venture. This will see GMGAM investing a portion of its client mandates into RE Capital real estate opportunities.
In addition, GMGIAM will be mandated to act as an asset manager in a newly formed Luxembourg partnership structure established by RE Capital to house specific European development projects. It is envisaged that the portfolio will grow to a few hundred million euros over the next few years.
As a new partner Skybound Capital's knowledge and experience will provide networking and investment opportunities that RE Capital can leverage. "We are thrilled to embark on the new journey with Skybound Capital and look forward to growing the portfolio together with our joint venture partners," says Newman.
RE Capital, which has assets under management in excess of €700 million, has recently exchanged on a prime central London asset in Southwark. It has also signed heads of terms to acquire an excellent infill land site in the Golden Triangle, Algarve in Portugal. The company is also due to launch sales in its prime residential development in Marvila, Lisbon, in March 2021.
RE Capital has offices in Geneva, Lisbon and London, and will move into new grade A offices in the Strand, London in Q3.