First Property, an AIM-listed group with operations in the UK and Central Europe, has reached agreement with the Shipbuilding Industries Pension Scheme (SIPS) to establish and manage a new property investment fund.
First Property, an AIM-listed group with operations in the UK and Central Europe, has reached agreement with the Shipbuilding Industries Pension Scheme (SIPS) to establish and manage a new property investment fund.
SIPS, an existing pension fund client of First Property, has committed a minimum of £125 mln to the new fund for an initial term of 10 years.
The new fund will be unleveraged and will target a net total return of 7% per annum or more from investments in UK property. The investment remit is broad, First Property said, encompassing both investment and development properties across all sectors, including offices, retail, industrial and residential.
First Property Group will earn annual fees from the new fund calculated by reference to the value of the properties under management.
'The broad mandate enables us to tailor our investment approach to prevailing market conditions and to deploy capital where it is likely to earn the highest returns,' commented Ben Habib, CEO of First Property Group.
SIPS was advised by Hymans Robertson.
