Business
New Fund Mandate to invest £1
New Fund Mandate to invest £1.
About this update from First Property Group Plc
[{"type":"text","content":"\n RNS Number : 7906G First Property Group PLC 08 February 2010 \n \n\n \nDate: 8 February 2010\nOn behalf of: First Property Group plc (\"First Property\" or the \"Group\")\nEmbargoed: 0700hrs\n \n \nFirst Property Group plc\n§ New Fund Management mandate to invest £106 million in UK commercial property\n \nFirst Property Group plc (AIM: FPO), the AIM-listed property fund management group, today announces that its principal subsidiary, First Property Asset Management Limited (\"FPAM\"), has signed a contract to establish a seven year closed ended fund (the \"fund\") to invest in UK commercial property with a cash commitment of £106 million. This follows the announcement at the interim results on 30 November 2009, that FPAM had received indications of interest for in excess of £50 million for such a fund. \n \nThe fund will be called The UK Pension Property Portfolio LP and the external investors are exclusively UK pension clients of Stamford Associates, a leading international investment consultancy firm. First Property Group plc will co-invest £1 million in the fund and will earn annual fees from the fund based on the value of the properties under management, and may also earn additional fees if the fund achieves its performance targets. \n \nThe fund has been designed to pursue a core, and sometimes core plus strategy, focussing on well-let but slightly higher yielding mainstream commercial properties with an absolute return objective. The fund will initially be un-geared but may introduce gearing at a later stage, subject to the unanimous approval of the fund investors. The fund will target properties with lot sizes of between £3 million and £15 million.\n \nThe new fund marks a significant step in the growth of FPAM and, once invested, the cash commitment will represent an approximate 30% increase in assets under management to approximately £400 million (Sep 2009: £296 million). This will be FPAM's eighth fund and its second major institutional fund, the firs...