Mercer Real Estate Partners (“Mercer”), the private property investment firm based in the UK, has announced the final close of its second fund Mercer Real Estate Partners II (“MREP II”). The fund has successfully secured approximately £235m in total discretionary commitments, above its initial target, from a diverse group of institutional investors in North America, the UK and Europe.
MREP II intends to continue Mercer’s strategy of investing thematically throughout the UK in transactions where it can drive returns through direct team management while limiting downside volatility through thoughtful analysis and execution. Mercer is an experienced investor and manager in multiple asset classes and across the capital structure, seeking value add / opportunistic returns, having historically outperformed its investment return targets.
Commenting on the final close, co-founder of Mercer, Brandon Hollihan, said: “We are extremely pleased that we have had such a positive response from a thoughtful investors base, both here and in the US. Recent political events may have brought forward a correction that was already developing in certain UK subsectors and there should be significant opportunities during this investment cycle to strategically invest at attractive values.”
Atlantic-Pacific Capital Inc. served as the exclusive global placement agent on behalf of Mercer during the capital raise. Alex Hurst, Principal at Atlantic-Pacific, said, “The founders have built an exceptional track record that exhibits a differentiated approach to pricing and controlling risk along with that rare facet of true vertical integration. It has been rewarding for Atlantic-Pacific working as both an advisor and an agent to build the capital base for this outstanding group.”