US fund merges with Magnus

Macclesfield-based office investor Magnus has been refinanced and formed a new venture with Karlin Real Estate, a Los Angeles real estate investor.

As part of the restructuring, the new venture will take over Magnus' 458,000 sq ft, North West office portfolio comprising 16 multi-let properties in and around Manchester.

Karlin will contribute £125m of its existing UK portfolio in 14 buildings to the venture and replace Magnus' main lender. The full detail of the restructuring has yet to be disclosed and no one from Magnus was available to explain the deal this morning. Records at Companies House show four directors resigned from Magnus Limited on 17 September; managing director Nick Hynes, finance director Jerry Green, director Steve Widdowson and estates director Edward Lockyer.

Hynes said in a statement: "We are delighted to be working with Karlin who have not only recapitalised the company, but also have entrusted their growing UK and European portfolio of assets to us to manage. Karlin have investments in Spain and Portugal and are also active in the Dutch, German and Irish property markets.

"We now have over 30 assets totalling approximately 2m sq ft. This partnership allows us to leverage a significant balance sheet and become more active in the market as we renew the search for investments in the regions. We are looking for value add opportunities that will benefit from active management and fresh capital across the UK market."

Karlin has aggressively built a diversified property portfolio in the UK over the past 18 months that includes the 14 buildings in the North West and Midlands that are being contributed to the new venture.

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