GIC Real Estate has teamed up with Orchard Street Investment Management to launch a second special situations fund.
The property investment arm of the Government of Singapore Investment Corporation and the London-based fund manager’s fund will have up to £200m of firepower, including debt.
The vehicle will have a six-year lifespan and will seek to make up to 15 individual investments during the next two years. It will include gearing up to a maximum of 65% of the total value, and will seek individual assets of between £15m and £50m.
It follows from the first Orchard Street UK Special Situations Fund, which was established with the same investors in 2008 and invested £130m into UK real estate.
Chris Bartram, chairman of Orchard Street, said: “The first Special Situations Fund launched in 2008, made its major investments in 2009 and has been a great success so far.
“The object is the same as for the first fund, which is to buy assets with active management potential for improvement. This style of investment is an area of particular experience and expertise for Orchard Street, and which we believe has the potential to generate higher than normal market returns.”
