Collins Stewart will this month launch a closed-end property fund investing in major urban centres i...
Collins Stewart will this month launch a closed-end property fund investing in major urban centres in Turkey, Romania, Ukraine and Bulgaria, with a target annual dividend, once fully invested, of at least 7.5%.
The investment adviser to the fund will be a new emerging markets property advisory company set up and managed by Keiran Gallagher and Oliver Cadogan.
The fund will invest in a range of office, retail, industrial and residential properties in the target countries and aims to be fully invested within 12 to 18 months. Cities it will initially focus on will include Istanbul, Kiev, Sophia and Budapest.
Gallagher said negotiations were already underway for the purchase of eight properties, while a number of new areas have also been identified.
He said: "By moving into unchartered waters there are attractive yields. We want higher yielding properties that have growth attached to it. At the moment, in the UK and Europe it is very difficult to find property with the margin for growth that it had 10 to 15 years ago."
Key features of the Collins Stewart Eastern European Property Fund include a proposed placing date in early March 2006, closed-end Guernsey incorporated investment company, to be traded on Aim, a target annual dividend to shareholders of at least 7.5% once the fund is fully invested, payable semi annually, as well as flexibility regarding property sector, country and investment size.
Initially the fund will focus on office and retail property, followed by industrial and then residential purchases.
Gallagher added: "The countries we are targeting have generally received less attention from international investors than their Central European counterparts.
"We are seeing many multi-national businesses entering these countries seeking western standard accommodation, which is currently in limited supply.
"Coupled with recent strong economic growth and the financial and structural reforms that are being implemented in these countries we believe there are good investment opportunities available."
Collins Stewart to launch close-ended property fund
Target annual dividend of 7.5%
Domiciled in Guernsey
£300bn of liabilities
View from the front row
Transfer from occupational scheme
Appointed by FCA and PSR boards