The former chief executive of UK capital markets at Cushman & Wakefield, David Erwin, has teamed up with Cube Real Estate to launch a retail investment business.
Erwin, who left C&W in March after almost 30 years with the business, is preparing to go out fundraising for the new business, Dunluce Property.
He said the firm hoped to have around £150m of assets under management by November 2016 and would offer five-year, ungeared returns of 5-8%. With a “sensible level” of gearing of around 50%, returns would be pushed out to around 10-12%, said Erwin.
Dunluce will invest primarily in retail, largely in good towns in the South East, with lot sizes of £3m to £20m targeted. Around 20% of the portfolio will be invested in industrial property, with 20% in “special situations”.
Erwin said: “After almost 30 years as an agent, it has been a long-term ambition of mine to help investors manage and enhance their investment exposure to the retail sector.
“Dunluce will work with capital from all sectors to establish a private fund and I am confident that my experience of dealing with the retail market will produce high-quality opportunities for investors seeking sustainable returns. The strong team already in place at Cube provides a perfect partner to encourage early growth of the business.”
Cube chief executive Stuart Loggie said: “In an evolving market needing clear, thought- out strategies, our new team will be best placed to deliver wider market opportunities, create business plans and execute to deliver value.”
He added: “Having launched and run several value-add funds, we see a gap in the market to provide investors with long-term returns in a bespoke vehicle.”
Alongside investing, Dunluce will work as a property and asset management specialist, helping investors improve returns from their existing retail assets.
