New fund to capitalise on re-pricing in UK

Ropemaker Properties, the real estate investment arm of the BP Pension Fund, and Cube Real Estate have established a new fund to take advantage of the re-pricing of real estate in the UK. The Cubemaker Partnership will invest in a portfolio of UK multi-let commercial property investments offering asset management and capital appreciation prospects.

Tim Hayne, head of property at BP, commented: 'Cubemaker will focus on acquiring sub £10m assets where Cube Real Estate has an excellent history of adding value through first class stock selection and successful implementation of asset management initiatives.'

The Fund is being asset managed by Cube Real Estate, a UK private real estate investment company which was formed in 2002 by founding directors Chris Oliver and Stuart Loggie. The Cubemaker Partnership has the capacity to invest more than £100 mln.

Stuart Loggie, director at Cube Real Estate, added: 'Market conditions bear resemblance to the pre-recovery cycles of 1992 and the immediate post millennium years, although the debt market is as poor as we can remember. Cubemaker represents an exciting 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 .'

King Sturge Financial Services Ltd advised Cube Real Estate on the establishment of the Fund and is the UK regulated operator of the Fund. Nabarro acted on behalf of BP; Travers Smith on behalf of Cube Real Estate.