First Property launches £106m core fund

A group of UK pension funds are backing a fund that aims to acquire well-let property in the UK. The sponsor is contributing £1 million of co-investment capital

First Property Group, a company listed on London’s AiM market, has raised £106 million; €121 million; $165 million) for core and core-plus UK property.

UK pension funds advised by Stamford Associates have committed to the seven-year closed ended fund while First Property has put in £1 million as co-investment.

The vehicle, called the UK Pension Property Portfolio, will earn annual fees based on the value of assets under management, as well as by achieving performance targets, it said.

It will target properties with lot sizes of between £3 million and £15 million, initially operating without leverage, and will need unanimous investor consent if it wants to take on debt.
The vehicle is being managed by First Property Asset Management, a subsidiary of the public group.        

Ben Habib, chief executive of First Property Group, said in a statement said the fund marked a “substantial return” to the UK.