UK- BP's pension fund real estate arm Ropemaker Properties has formed a £100m UK investment fund called Cubemaker Partnership with London-based property company Cube Real Estate, that aims to take advantage of the economic downturn and acquire cheap assets.
The fund is looking to buy cheap, commercial property that offers asset management potential to try and increase their value, but will also target smaller properties in all asset classes that need repositioning or redevelopment.
Cubemaker Partnership will begin with an initial £52m of equity, which according director of Cube Real Estate Stuart Loggie, they will "look to build up to £100m in the future."
Loggie is confident the current turmoil in the property market climate offers investment opportunities for the fund: " Cubemaker represents a flexible platform for us to participate in the next property cycle, as we are able to respond quickly to market changes and particular opportunities. We anticipate the market uncertainty will offer interesting projects, which our equity-rich fund can take advantage of in the near term, while Cube will work thereafter to add value over the life of the fund."
BP has provided 80 percent of the initial sum while third-party investors, including Cube Real Estate, have provided the rest.
Tim Haynes, head of property at BP, said: " Cubemaker will focus on acquiring sub-£10m assets where Cube Real Estate has an excellent history of adding value."
Cube Real Estate will help choose the investments and provide asset management for the properties bought by the fund.
Cube Real Estate was set up in 2002 by Stuart Loggie, founder of investment agency Morgan Loggie, and Chris Oliver, founder of Salmon Developments.