Rockspring Property Investment Managers has announced it raised 拢152 mln (EUR 169 mln) in the first close of Rockspring UK Value Fund, a closed-ended fund focused on opportunities arising from re-pricing across the UK commercial property sector.
Rockspring Property Investment Managers has announced it raised 拢152 mln (EUR 169 mln) in the first close of Rockspring UK Value Fund, a closed-ended fund focused on opportunities arising from re-pricing across the UK commercial property sector.
The equity was raised from five investors from the UK and the Continent.
The fund, which has a total target of 拢400 mln, will have the capacity to spend 拢600 mln after gearing and the first close will now allow the fund to begin investing immediately.
Rockspring said UK Value will take advantage of acquisition opportunities arising from 'increased commercial property yields that are now cheaper than the five and 10-year historic averages, market mispricing, a limited availability of debt and the opacity in the UK real estate market.' The fund will build a diversified property portfolio at attractive pricing levels to allow scope for near-term capital appreciation and income growth.
The fund will have the ability to invest in direct commercial property, joint ventures with experienced partners, pooled/unitised property vehicles and companies owning specifically targeted assets. It will focus on small to medium sized assets primarily in the office, retail and industrial sector and will target assets which will generate above-average returns in themselves.
There is no pre-determined geographical or sector allocation, allowing a flexible approach with a broad range of target assets whilst maintaining an appropriate diversification of risk.
Neal Shegog, Partner of Rockspring and head of asset management, is the fund director of the UK Value Fund and Richard Bains is the fund manager.
