M Capital launches GBP100m real estate fund
A new GBP100 million real estate fund targeting bespoke real estate investment opportunities worldwide is to launch, in collaboration with international real estate advisory firm Montague Property.
FCA regulated M Capital, which will formally launch on 1 June 2020, will develop the market by providing equity and bridging finance for the development of both existing and new real estate projects.
The capital within the fund will be utilised in three ways: firstly, by providing equity to buyers to acquire high end real estate sites that have already been developed; secondly, by providing equity to developers to develop bespoke new international projects; and thirdly, by providing bridging finance to developers in those markets that lack the UK’s bridging loans infrastructure – including Spain, Portugal and France.
The fund will focus on high-yield investments offering returns within a three to five year time horizon.
In addition to providing finance to third parties, M Capital will also serve as the investment arm of Mayfair-based Montague Property. This relationship will see M Capital fund and collaborate on a range of developments that Montague Property will manage and ultimately exit.
M Capital has been established by Montague Property founder Thomas Balashev, who will serve as CEO. Balashev will be supported by international property developers Dylan Mitchell (Chief Operating Officer) and Mattias Sandvall (Chief Investment Officer) who bring their own unique experience and expertise from the property and financial services sectors.
South African Mitchell is founder of international real estate agency Worldwide Property Company, focussing on overseas investment properties. Prior to founding Worldwide Property Company, Mitchell was owner of London-based financial services firm Somerset Group Ltd, where he specialised in investments and portfolio management.
Swede Mattias Sandvall started his career at investment bank Nordea Bank PLC, before establishing Sandvall Invest, a London-based property development company specialising in the coliving sector.
The launch of M Capital follows the announcement last month (April 2020) of Montague Property’s international expansion, including plans to expand into the US (Miami, LA), Paris and UAE markets over the next 18 months.
Thomas Balashev, Founder and CEO, M Capital, says: “M Capital’s entire ethos is underpinned by experience and transparency. Our focus is on ensuring our investors gain access to the best investment opportunities possible, whilst enjoying the emotional reward that a successful property investment delivers.”
“We are proud to be offering a range of solutions to the market, including bridging finance. Many European markets for example lack the bridging finance facilities found in the UK. Without bridging finance, so many ambitious visions fail to materialise; we are therefore working to add value by providing capital and unlocking growth across these markets.”
Dylan Mitchell, COO, M Capital, says: “The versatile nature of the fund means we can not only take advantage of different opportunities as they arise, but also provides far greater flexibility during the time of COVID-19.
“Our combined connections with the leading estate agents and developers worldwide means access to, and the opportunity to take advantage of, the most exciting real estate development opportunities available worldwide.”
Mattias Sandvall, CIO, M Capital, says: “With markets starting to slowly move again, the launch of M Capital could not have come at a better time.
“Thomas, Dylan and myself have complimentary skillsets, aligned core values and resourceful combined networks. The M Capital team, along with the founders, have considerable experience of profitable development projects as well as asset management."