James Caan teams with ING to invest in UK commercial property

                                                                                         

James Caan is launching the Hamilton Bradshaw Diversified Property fund through his UK-based private equity firm, Hamilton Bradshaw. Subject to regulatory approval the fund will launch in the autumn.

Caan will act as an investment adviser on the fund with Simon Latham, who heads the property investment team at ING, making the investment decisions.

Caan said he believes commercial property market is more attractive than it has been in the last two years. To back this prognosis he intends to invest 10% of his personal wealth in the fund.

He said: ‘My view is that the real estate market has hit the bottom, valuations have settled and there are opportunities to be had. Two years ago the property market got overheated but today you can acquire real estate at yields of between 7 and 8% at a cost of capital of 6%.

'Two years ago the cost of capital was also 6% but yields were only between 3 and 4%. This represents a near 30% shift in value and real estate is as attractive as it has been in a while.’

The Diversified Property fund will target prime real estate across the country. It will employ a conservative investment strategy targeting property with strong covenants and long leases which have constant cash flows.

The minimum range it will spend on property will be between £10 and £15 million.

The fund will be domiciled in Luxembourg with a minimum investment of £100,000 and is specifically targeting the private client market. However, ING and Hamilton Bradshaw are looking to build a structure for the UK domestic market, making it easier for the adviser community to access the fund.

Caan believes his experience, combined with that of ING, offers investors an attractive opportunity.

‘This fund will be run according to a specific mandate. With an experienced entrepreneur running the fund alongside ING, I believe the fund provides investors with an attractive investment opportunity.’

A number of asset management groups have underlined their commitment to launch UK commercial property funds in recent months in the improving market conditions.

These include Aviva Investors and Standard Life Investments. Meanwhile boutique Clavis Walden Investments is aiming to launch the first UK commercial property fund to pay dividends on a gross basis.

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UK Business Property specialises in commercial property in the UK, offering commercial agents important incentives to bring all their properties to the whole market.

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