Greenridge Investment Management has launched a £200m fund focusing on investment in the UK regions.
With target gearing of 50%, it will have firepower of £400m.
The Greenridge Opportunities Fund has already received £100m of commitments ahead of an expected first close in January. It is set to hold a second and final close of £100m next April.
The fund will invest predominantly in office and retail assets of between £1m and £75m in areas where rental growth is forecast. It is targeting an IRR of 12% and will have a seven-year life with the opportunity to extend for two years and another two years after that.
Greenridge co-founder Bik Bhuptani (pictured) said: “Our investors are after yield and security, with good tenants and long leases. Any asset we buy has to be capable of being relet at the same sort of rent in the 12 months afterwards.”
Bhuptani and Paul Simmons founded Greenridge in 1994 to invest predominantly in real estate in the UK regions.
Earlier this year the company bought the 148,700 sq ft NHS headquarters building Gyle Square in Edinburgh for £44.8m – a 5.75% yield.
It also acquired the 172,000 sq ft European headquarters of US conglomerate 3M, on Amen Corner Business Park in Bracknell, from Aprirose for £77m.
In 2015 it deployed £227m of capital from its proprietary capital and managed funds.
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