14 June 2019
Carey Olsen supports JR Capital on launch of multi-let industrial fund
Carey Olsen's investment funds team in Jersey has advised property-focussed investment company JR Capital on the launch of its new UK multi-let industrial sector investment fund, MLI UK LP (MLI).
The fund, which has been launched by JR Capital in collaboration with industrial developer and asset manager Chancerygate, has attracted the backing of Middle Eastern investors and recently held a first close of £25 million. Targeting a total fundraise of £100 million, the strategy for MLI is to assemble a geographically diversified portfolio of assets across the UK, generate secure income from a highly diversified tenant base and add value through active asset management.
The fund has a five-year life and will target multi-let industrial development across the UK in lot sizes of £5 million to £15 million.
Working alongside onshore counsel Greenberg Traurig, LLP, Carey Olsen advised on MLI's establishment as a Jersey Private Fund (JPF) and on all Jersey-related corporate and regulatory aspects of its launch. The team was led by partner Daniel O'Connor and assisted by associate Arindam Madhuryya.
Daniel said: "It has been a pleasure to work with JR Capital on the launch of its newest commercial property fund. Equally pleasing is the fact that MLI has been authorised as a Jersey Private Fund, which once again underlines the continuing attractiveness of the regime for funds operating with up to 50 sophisticated investors. Jersey funds are cost-effective, including because AIFMD-related costs are minimised, while for funds like MLI, whose investor base is outside the EEA, AIFMD obligations are avoided altogether."
Michael Ferris, head of investment capital at JR Capital, said: "We are very excited about the potential of this fund. With significant increases in online shopping, we expect this structural shift in the way we consume to continue to have an impact on demand for warehousing and distribution assets over the next cycle.
"Establishing the vehicle as a Jersey Private Fund met with our requirements perfectly and allowed for a streamlined regulatory authorisation process, while the clear and concise advice from Carey Olsen ensured the process ran smoothly and exactly as planned."