FINANCE: First Property Group has teamed with the Shipbuilding Industries Pension Scheme to create a £125m real estate fund.
SIPS has committed a minimum of £125m to the new fund for an initial term of 10 years.
The property fund management group will work with the pension fund – one of its existing clients – to target a net total return of 7% pa or more from real estate investments in the UK.
The group will consider offices, retail and residential stock.
Ben Habib, chief executive of First Property Group, said: “The broad mandate enables us to tailor our investment approach to prevailing market conditions and to deploy capital where it is likely to earn the highest returns.”
