Sir Elton John is the latest celebrity to invest in commercial property, turning to a new fund aimed at high-profile private investors.
The £400m fund will be launched by property syndicator Active Asset Investment Management (aAIM), which has teamed up with investor Nicholas Cowell, the brother of X Factor and Pop Idol judge Simon Cowell.
After final closing, they expect the fund to buy up to £400m of property, mostly in the UK.
Nicholas Cowell, who runs London-based investment specialist Abbey Road Estates, confirmed that he was in talks with Sir Elton’s business team. Rod Stewart, David Bowie and Simon Cowell were also considering investing, aAim said.
Speaking from the Sandy Lane resort in Barbados, Cowell said: “I am impressed by aAim’s ability to deliver well-structured deals, and it was this track record that gave me the faith to offer this fund to people I have known for years.”
aAim’s existing investors include Manchester United manager Sir Alex Ferguson. It has bought £420m of property since it was founded by ex-Nomura director Mark Tagliaferri and property entrepreneurs Robert Whitton and Robert Kanerick in 2003.
The new fund, Active Property Fund One, will be registered as a Jersey expert trust. This is a relatively new collective investment structure designed to cater to high-net-worth and sophisticated investors.
Investors will receive an annual income of 6% and an additional return of around 15-20% after eight years. Cowell and aAim plan to spend the first year investing the fund, followed by a five-year “churn” period and a two-year disposal period.
aAim chief executive Robert Whitton said: “Interest has been extremely encouraging. This is a market we have already catered to very successfully, and Nicholas has given us huge added impetus.”
References: EGi News 10/01/05
