Sat, Oct 25, 2014
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   |   

Banner

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. Commodities - Oil wreaking havoc on small-cap energy stocks sliding 36%[more]

    From Bloomberg.com: Owning almost anything in the U.S. stock market has been a losing proposition since September. Owning smaller energy companies has been a catastrophe. Hercules Offshore Inc. and Resolute Energy Corp. are among 19 oil-and-gas equities in the Russell 2000 Index that lost more than

  2. Investing - Hedge funds favor equity long/short, Strategic bond managers hedge against further high yield sell-off[more]

    Hedge funds favor equity long/short From Securitieslendingtimes.com: Equity long/short strategies will generate good returns for hedge funds in the future, according to a panel at this year’s Risk Management Association Conference on Securities Lending in Naples, Florida. Panellists Sand

  3. Legal - Ex-hedge fund analyst weeps as judge hands down 5 year sentence, Former Columbus investment manager Steven P. Moore indicted on theft charges, SEBI confirms ban for Hong Kong hedge fund, SEC announces enforcement action against compliance officer[more]

    Ex-hedge fund analyst weeps as judge hands down 5 year sentence From Hereisthecity.com: An ex-hedge fund analyst was sentenced to 5 years in prison for his role in insider-trading scheme. The New York Post reports that former hedge fund analyst Matthew Teeple was sentenced Thursday to fiv

  4. Goldman in talks to acquire IndexIQ[more]

    From Bloomberg.com: Can Goldman Sachs put ETF investors on a liquid diet? Goldman is in talks to acquire IndexIQ, Reuters has reported. Index IQ is a small exchange-traded-fund firm known mostly for products that replicate hedge fund strategies, called "liquid alternative" ETFs. While IndexIQ has 11

  5. Other Voices: CALPERS dilemma should be a warning to hedge funds wanting institutional investors[more]

    From Ian Hamilton, founder of IDS Group. A quick comment on the CALPERS’ disinvestment from the hedge fund market and the jitters it is causing. Pension Funds should not be sheep and follow CALPERS’ decision as the issues that CALPERS has with hedge fund investments are in many ways unique t