The London Fund has made a £30 mln (€35.4 mln) investment to real estate fund Yoo Fund, which redevelops and repositions existing assets in the Greater London area.
Established in 2019 by Yoo Capital and the Astarte Special Opportunities Platform, the fund focuses on undersupplied or mispriced sectors, such as life sciences, healthcare and creative industries.
Following the investment, Yoo Capital has acquired two seed assets for the fund - Shepherds Bush Market and the Saville Theatre.
The 41,806 m2 Shepherds Bush Site will see the addition of affordable housing and office space, including incubator spaces for tech and biotech start-ups and studios for artists and creatives.
The 10,219 m2 Saville Theatre site in London’s West End will be reconverted from a cinema to a theatre, with the addition of floors to create a boutique hotel as part of a JV.
LPPI CIO Richard Tomlinson said: ‘We are excited to be working with an experienced team that has invested more than £11 bn in private equity investments over 25 years and bring strong relationships with London boroughs. Through this partnership we have the opportunity to secure the long-term future of two London landmarks, demonstrating the fund's investment strategy to support large-scale regeneration projects that serve local communities, create jobs and provide affordable housing, alongside wider social and environmental benefits.’
London CIV CEO Mike O'Donnell added: ‘As the second investment by The London Fund, I look forward to making further progress in our strategy to deploy capital to long-term and sustainable projects in London which benefit local communities, all while offering good financial returns.’
Set up by Local Pensions Partnership Investments (LPPI), London CIV and the London Pension Fund Authority, The London Fund focuses on BTR residential property and affordable housing, community regeneration projects and infrastructure.