Orchard Street Investment Management has teamed up with an affiliate of GIC Real Estate – the property investment arm of the Government of Singapore Investment Corporation – to create a £200m special situations fund to invest in UK commercial property.
It is the second time that Orchard Street and GIC have established a special situations fund. The first Orchard Street UK Special Situations Fund was formed in 2008 and acquired property assets totalling around £130m.
The second fund which, with debt, will have the capacity to invest in excess of £200m, 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 of up to a maximum of 65% of the total value, and will seek individual assets of between £15m and £50m.
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.”
daniel.cunningham@estatesgazette.com
