BDO launches UK commercial property fund
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BDO Stoy Hayward Investment Management is launching a UK strategic income property fund in conjunction with COBA Asset Management and Strutt & Parker.
The UK commercial property fund will seek to generate income by exploiting high initial yields from a depressed property market and acquire quality properties with strong tenants.
It will target a total return of 10 per cent, including an annual distribution of 5-6 per cent once fully invested with an expected life of up to seven years.
Profits will be distributed as proceeds from sales, or at the end of the funds term.
The fund is structured as a limited partnership led by COBA Asset Management managing director Graham Gould.
Graham Gould says: “Income from commercial property tends to be relatively stable over time and is the long term driver behind property returns. Property values, however, have plummeted creating a window of opportunity for the acquisition of assets to target income. This market will not last forever as asset prices will eventually grow but as the market bottoms out, now is the ideal time to invest.”
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