Simmons & Simmons has advised APG Strategic Real Estate Pool ("APG") and GRIP Unit Trust (“GRIP”) on the formation of the GRIP, a real estate fund worth approximately £349.4 million.

APG is Europe's largest pension fund asset manager with €325bn of assets under management. GRIP has been formed by APG and Grainger plc (“Grainger”), the UK’s largest residential property landlord, to acquire the residential property portfolio owned by G:res1 Limited (“G:res”), a UK market-rented residential property fund.

APG has taken a 73.8% equity stake in the acquisition, making an investment of approximately £158 million in GRIP, the remaining £59 million being invested by Grainger.

GRIP's aim is to develop by investing in predominantly stabilised, market-let blocks and portfolios focused on Greater London. GRIP will also have scope to invest in Build to Rent development opportunities.

This was a complex transaction that required balancing the interests of many parties in the purchase of a very large underlying real estate portfolio, and the putting in place of related financing, equity and management arrangements.

The Simmons & Simmons team was led by Corporate Partner Matt Rees assisted by Corporate associates Alice Steward, Lesley Olsen and Sally Booth. Specialist advice was provided by Nick Cronkshaw and Chris Agnoli (Tax), Richard Hughes and Erica Houlihan (Banking) and Nick Jones and Sarah Birchley (Real Estate).

Commenting on the transaction, Matt Rees said: ‘‘This has been a fantastic transaction to be involved in, and for such a prestigious client as APG. It has been a pleasure working with both the APG and Grainger teams on the creation of this new fund and we wish them every success for the future of GRIP’’.

http://www.simmons-simmons.com/en/News/2013/01-Jan/349m-Real-Estate-Acq…