McCabe JV launches UK opportunity fund for Chinese investors

Veteran property entrepreneur Kevin McCabe is launching a fund to give Chinese investors access to opportunistic real estate investments in the UK market.

Scarborough Group International, the UK-based property group led by McCabe, and US financial services firm Wyndham Advisers have formed a 50-50 joint venture named ScarWyn Capital to provide cross-border, real estate fund management in Hong Kong.

ScarWyn's first project is the Steeland Property Opportunity Fund aimed at Chinese investors. Scarborough said in a statement that Steeland will offer Chinese investors the opportunity to take advantage of bottoming property prices in the UK at a time when sterling is weak and investors are seeking to diversify their portfolios. The fund, with a maximum term of seven years and a target return of 15%, is looking to raise US$150 mln (EUR 106 mln) with a minimum investment of $5 mln.

ScarWyn will be co-chaired by Scarborough chairman McCabe and Wyndham Advisers founder Water Cheung.

McCabe has over 40 years experience of real estate, finance and management of both private and public companies. Cheung co-founded Wyndham Advisers in 2009 and has extensive experience of global investment banking.

Scarborough has grown from being a leading UK real estate developer and investor into a global player with real estate, leisure and financial service interests across the UK and Central Europe, Australia, China and India. In one of its largest deals Scarborough acquired European real estate fund and asset manager Teesland in 2006 and sold it to Valad Property Group for £865 mln (now EUR 982 mln) the following year.