MG Capital will open London office
New York based a private equity company is preparing to open an office in London.
The company plans to attract more UK investors with the newly opened office. MG Capital is watching the office areas at Berkeley Square in Mayfair.
MG Capital owns hundreds of apartments in New York that it leases to corporate tenants — businesses that use their properties to house staff — and operates debt free. Investors receive an annual dividend from the rental income on the properties.
About 70% of MG Capital’s assets under management come from outside the US, including UK investors. An established UK office would allow the firm to market directly to investors rather than relying on investors approaching the firm, known as reverse solicitation.
CEO, Eric Malley said: “Investors in this part of the world started to reach out to us and ask questions. We have been successful in collaborating with the investors who were in front of us at that time, and we think we can take that success a little bit further along in having a presence in London.”
According to an article in Financial News, the firm is raising investment for its fourth fund, with investors able to commit between $50,000 and $25m. It says $100,000 invested with it in 2007 would have been worth about $321,130 at the end of 2016, outpacing the S&P 500 and US real estate investment trusts during that period.
Malley added that falling investment in flashy New York property will be to MG Capital’s advantage as it looks to grow its portfolio.
He said, “This year, we are positioned to acquire our targeted 100 portfolio properties at an even lower cost-basis than our historical average of $2,250,000, which may in turn result in higher than expected dividend yields for our investors.”
Source: Financial News
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