Cordea Savills, the international property fund manager, is launching a prime London residential development fund.
The fund will provide finance through discounted forward commitments, development equity funding in joint ventures with preferred development partners, and the provision of mezzanine debt.
The target fund size is £250m with the first closing scheduled for January 2012. It is targeting an IRR of 18-20% pa.
The sterling-denominated closed-ended English Limited Partnership with a Jersey feeder will have a term of four years with the option to extend by a further two years, and will be able to use gearing where appropriate.
Locations targeted by the Fund include Mayfair, Kensington, Chelsea, Fulham, Knightsbridge, Belgravia, Notting Hill, Holland Park, Marylebone, Regent’s Park, St John’s Wood and Hampstead.
Patrick Carr, director of investment, said: “This proposition is one of the most compelling in the property sector at the present time. It provides the opportunity to capitalise on the current development funding gap as well as benefitting from the strong capital growth forecast in the prime London residential market during the life of the fund.”
bridget.o’connell@estatesgazette.com
