NEW YORK, Aug. 4, 2020 /PRNewswire/ -- HFZ Capital Group (HFZ) and Lionbridge Capital LP announce the launch of a new real estate fund, which will invest in publicly traded real estate securities that are currently undervalued. The partnership, known as HFZ Lionbridge LP, plans to strategically grow the fund over time and will leverage the two firms' expertise in both the private markets and the public markets to invest opportunistically across the listed real estate landscape. HFZ, Lionbridge Capital LP and other partners provided the initial seed money for the fund which will be open-ended, targeting several hundred million dollars.
HFZ is a real estate development company and investor with currently 30 million square feet under ownership and development. The firm works across multiple markets and various asset classes including residential, office, industrial, hotel, and retail, with total project values in excess of $15 billion. The leadership of Lionbridge Capital LP, led by Gregory Morillo, has a long track record investing in publicly traded real estate securities across market cycles.
Ziel Feldman, Chairman and Founder of HFZ Capital Group said, "We see a tremendous opportunity to complement our real estate private equity business with a listed real estate strategy, particularly in the current environment where there is an opportunity to acquire shares of real estate companies at levels that are dramatically discounted relative to their underlying net asset values." Continued Gregory Morillo, Managing Partner of Lionbridge Capital LP and Co-Portfolio Manager of HFZ Lionbridge LP, "We are excited to partner with HFZ Capital Group in launching HFZ Lionbridge LP. We see this as an opportunity to create a differentiated platform that will be able to capitalize on dislocation between public and private real estate markets through all cycles."
HFZ Lionbridge LP will leverage the resources of HFZ Capital Group which features a vertically integrated team of over 100 in-house professionals across investments, development, construction, and asset management. "We plan to use to our knowledge and experience as private investors and developers to evaluate our target companies and invest in the most compelling opportunities. In cases where there is an opportunity to actively engage with management teams in order to optimize shareholder value, we will be able to leverage our platform and expertise to do so," said Adam Feldman, Co-Portfolio Manager of HFZ Lionbridge LP.
Both companies' experience and relationships with principals and senior executives of prospective portfolio companies will provide unique insight into understanding the underlying value of real estate owned by target companies. HFZ Lionbridge LP will also take advantage of real time market data through its private equity investment business which oversees a variety of real estate investments across the country and is actively engaged with the brokerage community and the capital markets.
HFZ Lionbridge LP will focus on a broad range of investment opportunities with domestic and foreign real estate investment trusts and other companies including real estate operating companies and real estate adjacent businesses.
HFZ Capital Group
SOURCE HFZ Capital Group