Castleforge LLP and Conversant Capital LLC, a New Jersey-based real estate investment firm, have formed a partnership to invest in Central London office assets, including acquisitions and structured capital solutions.
Affiliates of Conversant have committed an initial £150m to Castleforge Partners V (Special Opportunities Fund), which will focus on investing in the Central London office market.
Michael Kovacs, founding partner at Castleforge, said: “I’m excited to be working with Michael and his team.
“Our two organisations have a lot of overlapping relationships and think very similarly about investing.
“Central London remains one of the most dynamic office markets in the world, yet the imbalance between supply and demand is now more pronounced than ever.
“With Conversant’s support, we are well-positioned to deliver prime, well-located office space at a time when companies are looking to bring employees back to the office and prioritise quality, connectivity, and sustainability.
“Our investment in 75 London Wall, a rare, large-scale redevelopment that will provide London with a new benchmark for high-quality, future-proofed workspace epitomises this strategy.”
Michael Simanovsky, managing partner of Conversant Capital, added: “Our partnership with Castleforge reflects our conviction in London’s office market and in our collective ability to identify and unlock value.
“We believe the current dislocation in the sector presents an exceptional opportunity, where limited new supply and rising demand create the conditions for outsized risk-adjusted returns.
“With our two firms’ deep domain expertise and relationships, coupled with a flexible mandate to invest across the capital structure, this Fund is structured to capture opportunities others cannot, combining downside protection with significant upside potential.”
