F&C REIT Asset Management (F&C REIT) has announced the launch of Best Value UK I, a new property fund targeting commercial real estate in UK secondary cities.
F&C REIT Asset Management (F&C REIT) has announced the launch of Best Value UK I, a new property fund targeting commercial real estate in UK secondary cities.
The vehicle, with a target volume of €180 mln of which €100 mln in equity, is dedicated to institutional investors from Germany and aims to build up a portfolio of 10 to 15 commercial properties in established locations outside London.
The fund is targeting a return of 5.75% per year during a term of 10 years. It will focus on office, retail and logistics assets with a value between €5 mln and €35 mln in cities such as Birmingham, Glasgow, Edinburgh and Manchester.
'Regional locations in the UK stand out in comparison to London because they have a tendency to be more stable and to provide higher returns,' commented Iris Schoeberl, member of the executive committee at F&C REIT Asset Management and managing director of F&C REIT Germany.
