Legal & General Property's latest innovative fund closes with considerable fire power to invest in UK larger lot size assets and unveils some interesting investor trends.
Legal & General Property ("LGP") announces the final close of its UK Property Income Fund (the "Fund" / the "UK PIF"), having secured a further £52 million of equity in the last six months, a considerable achievement given the tough fund raising environment. Since its launch in 2010, LGP has secured commitments totalling £300 million from 14 major international institutional investors based in the Middle East, Denmark, UK, France, Finland, Switzerland and Japan. Allowing for gearing, the Fund has a total investment capacity of circa £475 million.
The closed ended fund has an innovative structure which allows investors to choose their preferred level of gearing of between 0% and 50% Loan to Value (LTV), thereby offering a unique solution to accommodate a range of risk appetites. The Fund aims to provide investors with returns of 15% (geared) and 10% (ungeared) through careful stock selection of large lot size assets which will be positioned to capitalise on the economic recovery in the UK based on a core/core-plus risk strategy. The final split of investors demonstrates demand for both geared and ungeared positions demonstrating for some a confidence in applying debt at the lower end of the risk spectrum, whilst others favouring a pure property exposure. The internationally dominated investor base clearly signifies the global appeal of UK commercial property.
|
