Former WP Carey executives open real estate firm
A new firm specialising in sale-leaseback transactions led by former executives from real estate manager W.P. Carey has opened, amid a perceived opportunity to invest in the commercial property market
The new sale-leaseback investment manager, Northcliffe Asset Management, will be headed by former W.P. Carey & Co LLC chief executive Gordon F. DuGan.
At W.P. Carey, DuGan oversaw an increase in the firm’s assets under management from $2.5bn to $10bn this year over a roughly 10 year period.
He will be joined by three other former Carey executives, Benjamin P. Harris, former head of US investments, Alistair Calvert, who used to lead its London office, and Michael Heal, who was part of its London investment division.
The firm has opened amid a perceived opportunity in the commercial property market and will make investments in North America and Europe.
Calvert said: “The opportunities in sale-leaseback transactions have never been greater with the spread between the rental yield on these investments and financing costs at historic highs.”
Sale-leaseback involves a company selling its real estate to an investment manager who agrees to lease its assets. The company is given 100% of the market value of the assets in cash.