Blue Marble to raise £10m with launch of commercial property investment fund

Blue Marble has launched a commercial property investment fund aimed at high net worth individuals and professional investors.

In conjunction with fund manager Infinity, the Birmingham-based property investment and asset management business has launched the Blue Marble Property Fund 1 LP to raise £10m to invest in six to eight commercial properties across England and Wales.

Targeting an internal rate of return of between 7% and 9%, which includes an annual cash return of 4% over a projected period of five years, the fund has already secured £2m of capital from a cornerstone investor. The fund has identified two properties, valued at £3.1m, which will be transferred into the fund at day one to provide an immediate return to investors.

Blue Marble investment director Ed Jones said: “The Blue Marble Property Fund will appeal to investors looking to invest in commercial property, who are seeking to spread their risk across a number of commercial property investments. We have a demonstrable track record in resourcing those investments that offer the best prospects for rental and capital growth.”

In its new property fund Blue Marble will look to replicate the investment model it has created for a group of investors it advises, including Pemberstone, the Coalfields Regeneration Trust, local authority investment funds and high net worth individuals.

Jones added: “Our approach is based on protecting our clients’ capital, filtering down the many opportunities to identify and acquire properties which will perform for the fund.  These will be predominantly modern warehouse and office premises which we believe offer good prospects for rental and capital growth, and to which we can add value through our asset management expertise.

“Typically these properties will have between one and four years unexpired lease terms and can be acquired at a good discount to market value. With the UK’s departure from the EU next March looming even closer we feel that some market uncertainty will creep in, which will lead to a better buying environment.”