Gravis Capital Management Limited (Gravis), the manager of GCP Infrastructure, GCP Student Living and GCP Asset Back Income, has announced that it has entered into a strategic partnership with ORIX Corporation (ORIX) whereby ORIX will acquire a 70% equity stake in the Gravis business. ORIX is a diversified financial services group. The announcement says that ORIX’s asset management operation has grown significantly over recent years and the partnership with Gravis will allow it to expand into the UK infrastructure, debt, renewable energy and property sectors.
GCP Infrastructure’s board says that it is reassured that there will be no changes to the team currently providing services to the company and that service levels will be uninterrupted by the transaction. It sees as a positive that Gravis will remain independently-managed and will operate under its current brand whilst ORIX’s global presence will, over the longer term, provide Gravis’s management team with additional experience, expertise and access in areas such as asset sourcing, financing and potential new investors.
[QD comment: we think this is a welcome development for Gravis Capital and its funds, both of which are well regarded. Crucially, the underlying management arrangements will not be affected but Gravis should benefit from additional scale and efficiencies in both its asset management, operational and marketing activities.]
About GCP Infrastructure Investments
GCP Infrastructure Investments (Ticker: GCP) is a closed-ended investment company, and a constituent of the FTSE-250 Index, whose shares are traded on the main market of the London Stock Exchange. Its objective is to provide shareholders with regular, sustained, long-term distributions and to preserve capital over the long term by generating exposure to UK infrastructure debt and related and/or similar assets. GCP Infrastructure is a research client of QuotedData – click here to read our most recent note on the company.
The Company primarily targets investments in infrastructure projects with long term, public sector-backed, availability-based revenues. Where possible, investments are structured to benefit from partial inflation protection. GCP Infra is advised by Gravis Capital Management Limited.
GCP Infra has been awarded with the London Stock Exchange’s Green Economy Mark in recognition of its contribution to positive environmental outcomes.
About GCP Asset Backed Income
GCP Asset Backed Income (Ticker: GABI) is a closed ended investment company traded on the Main Market of the London Stock Exchange. Its investment objective is to generate attractive risk-adjusted returns primarily through regular, growing distributions and modest capital appreciation over the long term. The Group seeks to meet its investment objective by making investments in a diversified portfolio of predominantly UK based asset back loans which have contracted, predictable medium to long term cash flows and/or physical assets.
About GCP Student Living
GCP Student Living (Ticker: DIGS) describes itself as the first student accommodation REIT in the UK, investing in modern, purpose-built, private student residential accommodation and teaching facilities. Its investments are located primarily in and around London where the Investment Manager believes the Company is likely to benefit from supply and demand imbalances for student residential accommodation. At the time of writing, CP Student’s property portfolio comprises eleven assets with c.4,100 beds. At 30 September 2020, its property portfolio was valued at £1.01 billion.