The Carlyle Group and property developer Skelton Group have formed a £750m joint venture vehicle called Carlyle Skelton Development Group (CSD) to acquire and develop property throughout the UK.
Carlyle Skelton Development Group will invest in UK real estate with substantial development potential across all sectors, including both commercial and residential.
Carlyle and Skelton have been working closely over the past 12 months and have acquired two central London buildings for development – a 58,000 sq ft office building in Waterloo with hotel development potential, and a freehold 41,000 sq ft office building in Hay Hill, Mayfair also with potential for redevelopment.
Both schemes will be included in the new joint venture vehicle which, together with two further retail development properties currently under contract have a total value of £225m.
The Carlyle Group has seven real estate funds totalling $4bn of committed capital. In Europe, Carlyle manages two real estate funds totalling €1.2bn and focuses on off market opportunities primarily in office, logistics, retail properties, as well as hotel and residential. Carlyle has invested extensively across France, Germany, Italy, UK, Spain, Belgium and the Nordic countries.
In the UK, Carlyle has acquired three development opportunities: in 107 Cheapside, London, and a 64 acre brownfield site in Cumbernauld, Scotland, and 11/19 Monument Street, in addition to the CSD investments. The team has a proactive and highly selective approach to acquisitions and asset management investing in both existing structures and land for development.
Skelton was formed five years ago by Duncan Moss with the backing of a private family trust. Since that time it has grown significantly and produced very high return on capital. Skelton currently has a £120m development portfolio and £100m of investment properties.
The investment board of the Carlyle Skelton Developments Group will comprise Robert Hodges and Eric Sasson of The Carlyle Group and Duncan Moss, chairman of Skelton and Kurt Little, managing director.