Standard Life to launch pan European property recovery fund
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Standard Life Investments is to launch a closed-ended pan European property recovery vehicle which will have a minimum investment of £50,000.
The property recovery fund will take the structure of a five year limited partnership and will be managed by property fund manager Will Fulton.
It will target an annualised return of 12 per cent net of taxes, charges and other liabilities and will consist of an opportunistic and focused portfolio of pan-European (including UK) commercial property investments.
Standard Life Investments aims to raise up to £75m in equity for the fund and through borrowings will seek to leverage the property portfolio by 60 per cent to target a gross asset value of £180m.
Investment director Barry MacLennan says: “The fund has been specifically structured to provide professional investors with the opportunity to capitalise on our expectations for a recovery in property market returns. On a range of measures, we believe that commercial property is currently attractively priced and we would expect it to be of particular interest to tax-exempt investors, for example via Sipp and Ssas products.
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