Tunstall Real Estate Asset Management, a newly formed pan-European alternative investment management firm, and Starwood Capital Group, a leading global private investment firm, announced today that a 50/50 joint venture comprising controlled affiliates of the two companies has acquired Pinnacle Group.
Pinnacle is focused on housing-led regeneration projects across the United Kingdom in partnership with the public sector. The company specialises in a long-term, integrated approach to successful regeneration that combines investment in master-planning and place making with seamless neighbourhood services. Established over 20 years ago, Pinnacle now employs approximately 2,300 professionals, with a turnover for the year ending 31 March, 2017 of more than £90 million.
Tunstall and Starwood Capital have identified a significant opportunity to leverage the existing Pinnacle platform by providing substantial capital resources that will allow the company to invest in and deliver large-scale regeneration projects—a compelling growth sector in the UK real estate market. The existing senior management team will remain in place and has demonstrated its commitment to the transaction by investing alongside Tunstall and Starwood.
“The acquisition of Pinnacle, alongside the existing management team, together with our planned investment into its pipeline of current and future projects, represents a compelling opportunity for us,” said Roger Clarke, Chief Executive of Tunstall. “In partnership with the public sector, we look forward to providing much-needed new homes, as well as the regeneration of communities across London. This is a significant and exciting first acquisition for Tunstall and fits perfectly with our strategy to deploy capital across all sectors of real estate.”
“This acquisition allows our firm—via Pinnacle’s strong track record of leading public/private partnership-led housing regeneration projects—to invest through an emerging and exciting model to provide housing across all price points and tenures in the United Kingdom,” added Adam Shah, Managing Director at Starwood Capital.
Perry Lloyd, Pinnacle’s Chief Executive said: “I have every confidence that our new shareholders will allow Pinnacle to build on its existing capability and to respond positively and even more innovatively to the UK’s housing crisis. These are very exciting times for Pinnacle—none of which would have been possible without the support of our previous shareholders, Henry Cheng and Sammy Lee.”
Tunstall is a pan-European alternative investment fund platform established in 2016 to combine the skills of senior individuals experienced in capital markets and investment banking, European real estate origination, underwriting and asset management, and specialist expertise in non-bank lending and distressed credit. Tunstall is able to leverage its associate company, M7 Real Estate, benefiting from its reputation, experience and extensive network as one of the leading pan-European real estate asset management platforms. More information can be found at www.tunstallam.com.
About Starwood Capital Group
Starwood Capital Group is a private alternative investment firm with a core focus on global real estate, energy infrastructure and oil & gas. The Firm and its affiliates maintain 10 offices in four countries around the world, and currently have more than 2,200 employees. Starwood Capital has raised over $40 billion of equity capital since its inception in 1991, and currently manages more than $51 billion in assets. The Firm has invested in virtually every category of real estate on a global basis, opportunistically shifting asset classes, geographies and positions in the capital stack as it perceives risk/reward dynamics to be evolving. Over the past 26 years, Starwood Capital and its affiliates have successfully executed an investment strategy that involves building enterprises in both the private and public markets. Additional information can be found at www.starwoodcapital.com.