First Property has established a new £182m fund to invest in office blocks and business parks across England.
The AIM-listed property fund manager and investor with operations in the UK and Central Europe said the fund was in line with management’s belief that the UK’s decision to leave the EU has created opportunities that, as a niche fund manager, they are well placed to capitalise on.
Chief executive Ben Habib said: “This new fund represents major progress in the growth of our fund management business, with third-party assets under management expected to nearly double. It will also substantially increase our investment in UK commercial property.
“The UK’s decision to leave the EU has created opportunities on which we, as a niche fund manager, are well placed to capitalise. Our confidence in the fund’s prospects is also demonstrated by our decision to determine our entire economic benefit from it by reference only to the profits it earns.”
Once fully invested, third party assets under management are expected to nearly double in value.
First Property will not levy management fees for its services but will instead share in the profits earned by the fund.
The fund is First Property’s biggest fund raised to date. Total assets under management are expected to grow from £477m to more than £750m.
First Property has raised £250m from third parties since the referendum.
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