Fund targets ‘distressed’ residential property in region
A SPECIALIST fund focused on distressed and mispriced residential property in the North of England and Midlands has raised £3m and has identified a number of investment targets.
The Residential Property Recovery Fund has announced the first close of the fund, having raised the cash from individuals, corporates and pension investors.
The fund, which now stands at £7.5m with borrowing, will be invested over the coming months in houses and apartments below the national average house price in the Midlands and North of England
It is available to private investors, including SIPPs and SSAS, and institutions, and the minimum investor contribution is £25,000.
RPRF will focus on the Midlands and North of England as it believes the regions “have been harder hit by the downturn in prices thereby offering greater opportunities for the Fund, combined with the expectation that they will benefit from considerable regeneration and inward investment in the medium to long term”.
It said it has identified “several opportunities” over the last three months which it is considering, including new build properties, existing housing stock, and development opportunities in locations such as Leeds, Birmingham and Leicester.
Barney Buik, executive director of Residential Property Asset Management, the Fund Manager of RPRF, said: “We are pleased to have completed the first close of the fund despite the unprecedented difficult economic conditions, which will allow us to pursue a number of the opportunities which we have identified.
“We believe this momentum will follow through to successful further fund closes on a monthly basis over the summer. We are excited about the investment possibilities in our target area of the Midlands and North of England.
“Residential property offers an extremely attractive asset class with proven long-term performance, and many risk-averse investors are realising the inherently strong investment characteristics of this sector.
“We have seen evidence over the last three months that there are and will continue to be plenty of buying opportunities for the Fund. Our targeted geographic focus, strong network of contacts, and experience in residential property position RPRF well to capitalise on the opportunities in the market.”
