David Russell

Moorfield and Alliance begin JV with £150m kitty

Fund manager Moorfield Group has announced a partnership with David Russell's Property Alliance Group to take advantage of current market opportunities.

Alliance and Moorfield will each contribute capital and expertise to the joint venture. Alliance will be responsible for the property and asset management of investments.

Alliance/Moorfield will initially aim to spend £150m in the next two years on assets with values in excess of £50m. Moorfield will use funds from its £1bn MREF II Fund for the partnership.

David Russell, chairman of Trafford-based Alliance, said: "Alliance has stood the test of time, even in these difficult market conditions, to prove its status as a leading regional player. 2010 is a good time to step up our activities and this partnership with Moorfield means that we are open for business on a larger scale.

"As well as Moorfield's access to investment and development capital, it also provides Alliance with strategic links through its investments in traditional core sectors such as retail and its investments in non-core sectors such as student accommodation, retirement living and hotels and there will be spin-off opportunities in these areas."

Russell continued: "We already have a strong historic platform with our asset management, construction and design resources and this partnership will enhance our ability to source great opportunities over the coming months."

Marc Gilbard, chief executive of Moorfield Group, added: "We are delighted to be in partnership with Property Alliance Group, who have shown a genuine hunger for opportunistic investment and development and demonstrated their strengths with a full spectrum of successfully completed schemes. We are confident Moorfield can leverage on Property Alliance Group's capabilities and support their plans and we look forward to building a very substantial relationship with them."

Robin Priest of Beachwood acted on behalf of Alliance and will have an ongoing involvement in the joint venture.

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