Dentons advises Longstock Capital on first close of £100 million UK office fund

London-Dentons has advised Longstock Capital on the formation and establishment of its discretionary UK office recovery fund, the Longstock Office Investment Club (LOIC), which is targeting more than £100 million of investments and has successfully reached its first close.

The first close represents a key milestone in Longstock Capital's fundraising and investment strategy, enabling the business to continue its focus on acquiring and repositioning high-quality office assets across the UK. The fund will deploy capital with modest leverage, reflecting Longstock's conviction in the UK office sector and the current market opportunity.

As part of the fund's initial deployment, Longstock has completed the acquisition of McLellan Works in Glasgow, a refurbished mixed-use asset comprising approximately 44,000 sq ft. The acquisition exemplifies the fund's strategy of targeting fundamentally strong assets with potential for income growth through active asset management.

The Dentons team, led by investment funds partner, Owen McLennan, acted for Longstock on all aspects of the fund formation. The team also provided legal and tax advice on the carried interest mechanism, ensuring the fund's economics and incentive arrangements operated effectively while meeting investor requirements.

Tristan de Souza, Partner at Longstock Capital, said: "We are delighted to have reached the first close of LOIC and to begin deploying capital into what we believe is a highly attractive market opportunity. We are particularly pleased to have worked with the Dentons team on the acquisition of McLellan Works, whose commercial and pragmatic advice was instrumental in helping us successfully execute the transaction."

Owen McLennan said: "It has been a pleasure to support Longstock Capital on the successful first close of LOIC and its initial investment. This fund reflects a clear and compelling strategy to capitalise on opportunities in the UK office sector, and we look forward to seeing the platform continue to grow as it deploys capital across the market."

Owen was assisted in advising Longstock Capital by Sam Smart, an associate in the Investment Funds practice, alongside Lorna McCaa, partner, and Alasdair Graham, senior associate, both in the Tax team.

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