Grosvenor has launched the third in its flagship range of co-invested, sector-specific funds, the Talbot Residential Investment Fund.
The £50m, 50/50 joint venture with O&H Properties will invest in residential properties outside the company’s core areas of Mayfair and Belgravia.
Grosvenor aims to increase the fund to £200m, with the possibility of opening it to external investors at the end of next year.
Grosvenor fund management director Mervyn Howard said: “The fund will open to other investors in the fullness of time. At the moment our priority is to get it fully invested.”
The fund has already acquired its first asset, a £3m lot of 16 flats in Southampton. It has a further £4m of deals in solicitors’ hands.
Howard said that with residential property yields at around 4%-5%, Grosvenor was not sure whether the fund would be geared. However, the UK Limited Partnership would have a target return of 8-10%.
“This completes our flagship funds in our three core areas London offices, shopping centres and now residential,” he said.
References: EGi News 12/09/05
