UK commercial property analysts Seven Dials Consulting has entered the fund of funds market with a European commercial property fund.
Until now, Seven Dials has focused on providing investment research and helping other companies to launch property funds on a consult-ancy basis. It sees the fund as a natural extension to the work it has been doing and will concentrate its resources on moving into fund management.
The Seven Dials European property fund is open to both retail and institutional investors but will only invest in institutional property funds. It will focus on mainstream parts of continental Europe across different sectors but it has the ability to invest in funds that hold UK property. Eastern Europe will be avoided as Seven Dials believes the risks are higher than the potential rewards.
Chief executive Brett Robinson says it was important to provide a fair and transparent charging structure for the fund, particularly as Seven Dials has publicly criticised the level of fees taken by other property fund managers.
Although the fund has an initial charge of up to 3 per cent, all this will be paid as commission. There is an ann-ual management charge of 0.45 per cent but there is an option to increase this to 0.95 per cent to cover 0.5 per cent renewal commission.
Robinson says: “We are not a direct property manager, what we are good at is analysing other people’s propositions.”