Quoted company Stockbourne has formed a joint venture with financial markets group Cargill to purchase and trade a £44m retail portfolio.
The partners have formed Fairbourne, a specialist partnership vehicle, which has raised funds from HypoBank to buy the portfolio from Peel Holdings.
The 43 property portfolio produces a net initial yield of 10.5%. The properties will be intensively managed and traded over the medium term.
Stockbourne is putting up £500,000 for 5% of the equity and will receive a profit share as well as around £950,000 a year in management fees and the chance to earn further performance-related fees.
Buckley Smith introduced the deal and Allsop & Co advised the partnership.
Last year Stockbourne created a joint venture with Warner Estate to buy and manage an £11m portfolio. That vehicle, in which Stockbourne invested £500,000, is called PremierFlair.
EGi News 13/11/97
