London-based real estate fund management firm, First Property Group, is to take an opportunity fund focused on Polish investments to the market.
The AiM-listed business, led by chief executive officer Ben Habib, aims to raise £100 million (€115 million; $159 million) from “third party investors” for the vehicle, called FProp Opportunities (FOP), according to an announcement on the subject.
The fund would target investments in commercial properties across Poland, which the firm said offered “relatively high yielding properties compared to the UK market with secure and potentially growing income streams.”
First Property has committed £7 million already for the 10-year vehicle, which it expects to provide an IRR of 15 percent. It said it was committed to ensure its investment in the fund did not fall below 7 percent of its issued share capital.
The fund, the firm said, would acquire assets through subsidiary vehicles, in which third party investors could invest. “In this way the assets held by the fund may be augmented beyond the funds raised directly into FOP.”
Habib said: “The launch of FOP represents a major step for the group as we believe the current economic climate is ripe to exploit the buying opportunities we are seeing, particularly in Poland. We have committed a substantial proportion of our capital resources to this fund, which we expect will perform very well. Over time, it should grow into a sizeable pool of property assets, thereby also growing our assets under management.”
“Poland's positive economic fundamentals, its growing occupier demand within the property market and relatively few buyers of Polish commercial investment property at present, has created a good buying opportunity for the fund.”