New York-based firm Metropolitan Real Estate Equity Management, part of Carlyle, has bought a stake in Moorfield Real Estate Fund II (MREFII) from The William and Flora Hewlett Foundation for an undisclosed sum, according to UK regulatory notices.
Earlier this year, Lone Star Funds acquired a large chunk of the London-based Moorfield Group’s portfolio of real estate investments for £1 billion ($1.5 billion; €1.4 billion). The portfolio included investments in retail and office buildings, in addition to hotels and residential and student accomodation initially made out of Moorfield’s 2005-vintage Real Estate Fund I and MREFII.
According to Moorfield’s website, only a few investments remain in the portfolio of its second fund, including a 50 percent stake in Sovereign Reversions, a business that owns and manages portfolios of UK equity release plans in a joint venture with Grainger. MREFII is also still invested in the Audley Group, a UK developer and operator of retirement villages, according to the firm’s website.
MREFII closed in 2007 with £380 million. Other limited partners included Netherlands pension fund MN and the Andrew W Mellon Foundation.
As of 31 December 31, 2014, the Hewlett Foundation, which didn’t return a request for comment, had about $8.9 billion in assets. The foundation is no longer a limited partner in MREFII. About 20 percent of its endowment was invested in private equity and 10 percent in real assets, according to its website.
Metropolitan Real Estate was not immediately available for comment. Moorfield did not return a request for comment.
Carlyle acquired Metropolitan in 2013 and made it part of its solutions group, which also includes AlpInvest Partners and hedge fund platform Diversified Global Asset Management. Metropolitan currently oversees more than $2.6 billion of client capital worldwide.