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Green Property and TPG capital “stick together”

June 9th, 2010

Green Porperty has formed a joint venture with TPG to invest up to €900m in the UK and Irish property market.

TPG Capital (formerly known as Texas Pacific Group) is one of the largest private investment firms globally.TPG will form a venture with development and investment company Green Property that will target real estate in the UK and Ireland.

TPG has stick with Green Property, the Dublin property company run by Mr. Vernon, to invest up to “€900m of debt and equity in UK and Irish real estate assets that they expect to become available soon”, according to the Financial Times. As stated in the newspaper, “The venture aims to become a partner for UK banks looking to offload some of their £280bn of commercial real estate debt, of which approximately half is held by Royal Bank of Scotland and Lloyds Banking Group”.

Royal Bank of Scotland assets in the UK and Ireland were worth £31.7bn at the end of last year, according to the bank’s website. As for Lloyds they believe to have loans of between £50bn and £75bn for commercial property.

TPG has been focusing on opportunities to invest in distressed real estate since the financial crisis. Indeed the “US private equity group formed a $750m (£521m) joint venture in April with Rick Caruso, the Los Angeles-based real estate investor, to focus on investments in retail centers and shopping malls on the west coast of the US”, said the Financial Times.

Mr. Vernon, chairman of the new Green TPG Partners venture, said: “This is a powerful combination of capital and experience unlike any other in the market that will enable us to acquire and reposition underperforming properties.”

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