Lehman strengthens global real estate group

The global investment bank has announced two senior appointments to its European Real Estate Private Equity Group, including a new chief investment officer.

Gerald Parkes is joining the European Real Estate Private Equity Group of Lehman Brothers as managing director and head of the group. Mark Newman, currently a managing director with Lehman, has been appointed to the newly created position of chief investment officer (CIO) for the global real estate business.

Parkes, who will join the business in September, moves from Invesco Real Estate , where he was chief executive of the European real estate management and advisory business.

Parkes will take over from Newman and will report into Raymond Mikulich and Mark Walsh, global heads of Real Estate Private Equity. In a statement Mikulich said: “The addition of someone of Gerald Parkes’ stature and experience to our team is very exciting.”

Parkes has over 25 years’ experience in private equity real estate in the US and Europe, having previously founded Parkes and Company, headed up European investment management services for Lend Lease and been a partner in Richard Ellis’ US investment management business.

In the newly created role of CIO, Newman will oversee the investment and disposition process for Lehman Brothers’ global real estate private equity investment activities. He will also report directly to Mikulich and Walsh and continue to be headquartered in London.

Newman joined Lehman Brothers in 2000 and will continue in his current position as the head of the European Real Estate Private Equity Group, alongside his new responsibilities, until Parkes joins in September. Commenting on the move, Mark Walsh said: “We are expanding Mark’s responsibilities to leverage his expertise throughout the entire Real Estate Private Equity franchise.”

Lehman Brothers Real Estate Private Equity includes Lehman Brothers Real Estate Partners (LBREP), a real estate merchant banking fund with total committed capital of $1.6 billion (€1.3 billion). According to Newman, with this fund almost fully invested, it is likely that the group will be seeking to raise new capital 'over the next number of months'.

LBREP has committed $1.5 billion in equity in more than 70 real estate transactions in Europe and North America over the past three years.