Property services group Knight Frank is set to announce further collective investment scheme fund-raising through the rest of 2006, which is likely to involve talking to IFAs, says Robert Hannington, chairman of Knight Frank (KF) Corporate Finance Limited.
Following news revealing Knight Frank asset management subsidiary Rutley Capital Partners is to put money into Central and Eastern European properties through its Rutley European Property Limited fund, Hannington has said demand for new vehicles from the high-net-worth end of the market is pushing the provider towards offering more supply.
This is the second time in the past week KF has announced involvement in property asset management, following on from the launch of the Abbey Capital Guaranteed Residential Property Bond structured product, which runs for five or seven and a half years.
The Rutley fund has raised its first capital through a private placing involving hedge funds and private client investors, raising some 114m euros. Further fund raising for the vehicle is planned later this year.
Europe has been chosen for the focus of the fund because property prices in the UK have continued to appreciate. Wider investor demand for property is likely to continue, Hannington adds, because there is residual movement towards wider asset allocation by those whose fingers were badly burned by dot.com investments.
Offering property investments on a collective basis enables investors to participate who might not have enough capital to form property portfolios of their own, however the Rutley fund is still targeting the high net worth ground rather than the mass retail space, Hannington adds.
Knight Frank itself has been involved in property management and asset management at the institutional level for some 30 years, but the latest fund launch further marks its shift towards the private client/high-net-worth market.
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