First Property Group establishes new fund
First Property Group plc, the property fund manager and investor, have announced that it has established a new fund in association with Fulcrum Asset Management.
Fulcrum is a fund manager which invests across all major asset classes and geographies. Its investment process is unconstrained by benchmarks.
The fund will invest in commercial property in the United Kingdom and Poland. Initial investments will be focused on retail warehouses, high street shops and offices in the UK.
Initial investors will comprise one client of Fulcrum and First Property Group. Initial equity commitments will amount to some £10m of which First Property will contribute some £250,000. First Property will continue to co-invest 2.5% of subsequent equity subscriptions up to a maximum of £2.5m.
Notices for redemptions may not be given before August 2024, with redemptions taking place 12 months after any such notices are served.
Investments by the fund may be leveraged, with a maximum loan amount of 60% of the value of the investments.
First Property will earn annual fees from the new fund calculated by reference to the value of the properties under management. First Property will also be eligible for a performance fee, subject to exceeding an internal rate of return of 8% per annum.
Commenting on the new fund, Ben Habib, Chief Executive, said: “We are delighted to announce the establishment of this new fund, in particular because its investment remit spans the UK and Poland. The fact that Fulcrum Asset Management has chosen to partner with us in this endeavour is testament, amongst other things, to the excellent track record of First Property Group.”