Industry veterans launch European specialist real estate investment firm
Blackbrook Capital (Blackbrook), an independent European real estate investment firm focused on building a diversified portfolio of mission-critical real estate commercial assets, has launched with more than EUR1 billion capital commitments from Eldridge Industries (Eldridge).
Founders of Blackbrook, Gordon DuGan and Arvi Luoma, will take on the roles of Chairman and CEO, respectively.
Headquartered in London, Blackbrook specialises in the acquisition of single-tenant net leased commercial real estate assets across Europe, where there is long-term value in the property, and in developing a partnership with the occupier. Blackbrook provides build to suit financing to fund the construction and development of new mission-critical real estate for business growth. Blackbrook also structures bespoke sale-leaseback solutions for companies of all sizes, both investment- and sub-investment grade, public and private, and across multiple industries.
“We believe that commercial real estate owners and occupiers are better served investing their capital in their core business activities and growth initiatives, rather than tying up valuable capital in real estate assets,” says Arvi Luoma, CEO of Blackbrook. “Our investment approach is geared towards helping our tenants do just that, and give them ability to grow their businesses and improve their assets by extracting value. Today, that can often mean a drive to transition businesses and real estate portfolios towards a greener and more sustainable future. Blackbrook is also committed to being part of that transition with our tenants.”
Blackbrook’s primary focus is on industrial assets including logistics, light manufacturing, cold storage and similar assets used in the distribution and delivery of goods throughout Europe, as well as healthcare, hospitality, strategic office and specialty retail assets.
“It’s apparent there are inefficiencies available in the European property market for Blackbrook to generate attractive returns,” says Gordon DuGan, Chairman of Blackbrook. “We hope to replicate the success of our own track records with a best-in-class investment firm that we are launching today. We are very excited about the dynamics of the European market that we are looking to address, and the prospects that lay ahead of us.”
Gordon DuGan has more than 25 years of real estate investment experience and is focused on the overall strategic direction of Blackbrook. He was previously CEO of Gramercy Property Trust, a global investor in single-tenant industrial properties acquired by Blackstone for USD7.6 billion in 2018. As part of Gramercy Property Trust, Gordon founded Gramercy Europe, which acquired more than EUR1 billion of industrial assets across Europe. Previously, Gordon was CEO of WP Carey where he oversaw the growth of the company to more than USD10 billion AUM and established the European business.
Arvi Luoma previously spent 14 years at WP Carey where he served as Managing Director, Head of European Investments. His experience extends to more than €4 billion of sale-leaseback, build to suit, value-add and net lease investments in 20 countries and across all major asset classes including industrial, office, retail, healthcare and hospitality.
“Eldridge has had success building a net lease platform in the United States. Gordon and Arvi have highlighted a similar opportunity in the European market, providing businesses and property owners with efficient real estate financing solutions,” says Tony Minella, Co-founder and President of Eldridge. “Arvi has an exceptional track record of developing a net lease platform, and a keen eye for credit and risk management. Gordon brings a long track record in enterprise value creation through strong leadership. We are extremely proud to partner with them.”