Waystone partners with Astarte and Schulte on new real estate fund

Schulte Roth Helps Astarte With £400M Real Estate Fund
By Andrew McIntyre, Law 360

Law360 (April 15, 2019, 6:10 PM EDT) — Astarte Capital Partners LLP has set up a £400 million ($523.8 million) real estate fund with help from Schulte Roth & Zabel LLP to invest in hospitality, health care, entertainment and education properties in the London metro area, the company said on Monday.

Real Estate Fund to Target Properties that Can Be Repositioned or Redeveloped

Astarte said the fund, which Weil Gotshal & Manges LLP also helped the company with, will invest in between eight and 10 properties, targeting properties that have the potential to be repositioned or redeveloped. Astarte eyes “megatrends such as demographics, smart cities and sustainability,” the firm said in its announcement Monday.

“We strongly believe that this is the right time for institutional capital to be looking at London,” Teresa Farmaki, co-founder, and a partner at Astarte Capital Partners, said in a statement on Monday. “Our new platform will give global investors the opportunity to invest in … off-market, real estate in London, one of the most attractive markets in the world.”

ASOP Leading Investment Side of New Real Estate Fund

The company said its Astarte Special Opportunities Platform, one of Astarte’s co-investment platforms, is leading the investment side of the new fund. ASOP works with third-party investors and asset operators to invest in real estate. Astarte said the new fund will draw expertise from the asset management, private equity, and development sectors.

Astarte did not name other partners in the latest fund. The firm’s website states that it has drawn investment in the past from pension funds and family offices.

For Astarte, the latest fund follows a smaller one launched last year.

Partnership with Waystone

In the first quarter of 2018, the firm launched its Astarte Alternative Assets Specialist Fund LP, a $200 million fund. Astarte partnered with Waystone, which provided distribution services.

The company in September 2017 had announced it was halfway toward raising $200 million for the fund and said at that point the fund would target infrastructure assets as well as luxury retirement homes, with a focus on London, Switzerland, and Barcelona, Spain.

Astarte Capital Partners LLP is based in London and lists “specialist real estate” as one of its three areas of investment. The firm also invests in the natural resources and transportation sectors, according to its website.

Astarte is represented by Schulte Roth & Zabel LLP on the corporate side and Weil Gotshal & Manges LLP on the funds side.