Fletcher King has launched SHIPS 06, a £50m office and industrial fund.
The unregulated fund will be a geared, five-year-term commercial property investment fund focussed on capital growth with a targeted overall return on equity of 10-12% per annum.
The group said performance would be achieved by investing in city centre offices and multi-let industrial estates throughout the UK with added value opportunities.
It added: “SHIPS 06 will not have the high front end charges frequently associated with unitised investment structures”.
Fletcher King’s initial fund raising target is £15m plus.
With up to 75% gearing loan-to-value, this will provide SHIPS 06’s investment manager with £50m to invest.
The launch follows Fletcher King’s earlier property investment syndicates, SHIPS1 and SHIPS 04 which have generated an overall annual return on equity of 30% and 20% respectively.
Fletcher King’s directors and associates will be investing £750,000 in the fund.
David Fletcher, chairman of Fletcher King, said: “SHIPS 06 gives investors the opportunity to participate in a geared, diversified, UK commercial property portfolio focussed on capital growth and of a size that individual investors may find difficult to form themselves.”
References: EGi News 08/11/06
