Tue, Aug 30, 2016
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

SouthernSun Asset Management launches real estate opportunity fund

Wednesday, September 15, 2010
Opalesque Industry Update - SouthernSun Asset Management, a research-driven investment management firm with 23 employees and more than $1.3 billion in assets under management, announced that it has hired the former management team of Mercury Investment Management, LLC, and incorporated all of the firm’s operations onto the SouthernSun platform. Earl Blankenship, a co-founder of the Mid-South office of CB Richard Ellis and former President and CEO of Mercury, will lead the firm’s real estate investment strategy. Joining SouthernSun with Mr. Blankenship are Jim Dorman, Stuart Harris and Garrott McClintock.

SouthernSun’s Founder, CEO, and CIO, Michael Cook, said, “I have known and admired Earl for many years, and believe that his proven ability to identify undervalued commercial real estate assets will meaningfully diversify and maximize value from the SouthernSun platform. More specifically, his addition to the team allows us to: 1) leverage our firm’s high-quality human capital, 2) diversify SouthernSun’s product offering with a non-correlated asset class and 3) capitalize on the burgeoning distress in the commercial real estate market. Moreover, by assimilating his team to focus on real estate, our existing equity investment team remains focused entirely on our core business, which is investing in our Small Cap, SMID Cap, and Focused Global strategies.”

“We have been conducting deep market reconnaissance for the past year to assess proper timing and structure for a fund,” Mr. Blankenship added. “Our experience managing workouts and restructurings for distressed properties in mid-tier markets provides a unique and often overlooked niche opportunity. The alignment with SouthernSun helps ensure we have the people, process, and strategy to succeed.”

The Fund is seeking to acquire financially distressed office, multi-family, and retail assets in mid-market urban centers at discounted prices resulting from deteriorated market conditions. The real estate team is overseeing the management of the assets to stabilize and improve rental income and, ultimately, to sell into improving capital markets at non-distressed pricing.

According to a report issued by the Congressional Oversight Panel, about $1.4 trillion in commercial real estate loans will reach the end of their terms between 2010 and 2014, on nearly half of which the borrower owes more than the underlying property is currently worth. Increased vacancy rates have exerted downward pressure on the value of commercial properties. These market forces have created a buying opportunity for investors with liquidity.

(press release)

www.SouthernSunAM.com

kb

What do you think?

   Use "anonymous" as my name    |   Alert me via email on new comments   |   
Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing

 



  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Strategies - The 'Holy Grail' hedge fund strategy to handle a black swan the size of World War I, Hedge funds get more pushback on terms as enthusiasm for strategy wanes[more]

    The 'Holy Grail' hedge fund strategy to handle a black swan the size of World War I From IBTImes.co.uk: To illustrate a strategic gap common to today's portfolio managers, George Sokoloff, PhD, founder and CIO at Carmot Capital, proposes an interesting thought experiment – a breakdown of

  2. Institutional investors - Investors set to increase allocation to private debt, With investment income key, Richmond retirement system faces funding challenges[more]

    Investors set to increase allocation to private debt Investors are set to increase their allocation to private debt, with 60% revealing they believe the private debt market will grow over the next 12 months, according to a new study by Elian, a leading funds services provider. 41%

  3. Investing - Hedge funds snap up banks, unload Apple, Some of hedge funds' favorite stocks are finally starting to beat the market, Einhorn's Greenlight shifts positions, Treasury yield climbs to two-month high as Fischer joins hawks, 9 stocks smart investors put their money in last quarter[more]

    Hedge funds snap up banks, unload Apple From Barrons.com: Prominent hedge funds have a newfound love of big banks, and some have a distaste for shares of Apple, regulatory filings released last week show. The filings suggest that the funds have been pivoting their portfolios in recent mon

  4. Chesapeake energy seeks $1 billion loan to refinance debt[more]

    From Bloomberg.com: Chesapeake Energy Corp. is seeking a $1 billion loan as the company battered by cratering fuel prices and credit downgrades takes a step to address its $9 billion debt load. The natural gas producer hired Goldman Sachs Group Inc., Citigroup Inc. and Mitsubishi UFJ Financial Group

  5. Institutions - Nordic pension funds magnify focus on unlisted and direct investing, building up teams[more]

    From IPE.com: As bond yields remain at low or negative levels, pension funds and other institutional investors in the Nordic region are stepping up efforts to find higher returns by adding more unlisted investments to portfolios and are expanding in-house teams in order to do this, according to new