Cardales has launched a commercial property fund to complement its existing Glanmore Property and Br...
Cardales has launched a commercial property fund to complement its existing Glanmore Property and British Real Estate funds.
Primarily targeting British expatriates, the Dublin-domiciled GlanEuro UK Property fund, will purchase property in the UK in sterling and hedge the euro-sterling risk.
It is an accumulation fund so it will not pay dividends, but for regulatory reasons it will have a minimum investment threshold of e125,000 (£87,250).
It has been funded with e50m from Spanish Banif Bank and has a gearing of 1:1, meaning it already has e100m to invest.
Robert Court, chief executive of Cardales, said it had decided to launch the fund after being approached by Banif.
He said: "Regulations mean Spanish institutional investors are excluded from our existing funds, but for many people in Spain and throughout Europe, UK commercial property holds enormous appeal as an asset class."
Court said that despite targeting investors in Europe, the fund would still appeal to British expats.
He added: "There are a significant number of British investors living in Europe who have become comfortable with the euro as a currency, but who like investing in the UK because they see it as a secure place to put their money."
The fund, which has been in development for two years, will make its first property purchase in coming weeks, according to Court, with a £6m retail and office property in North England.
The fund expects to be fully invested within three months. The annual management charge is 2% and there is no initial charge.
Cardales launches commercial GlanEuro UK Property fund
Fund is Dublin domiciled
Open to British and European investors
Partner Insight: Introducing the Architas education series for clients.
'Fewer than 1% of firms PROD-compliant' - Rory Percival
'Left holding the can'
'VCTs and EIS compared' panel
Letter to Women and Equalities Committee