London-based private equity firm Hamilton Bradshaw is teaming up with ING Real Estate Investment Management for the launch of a UK focused commercial real estate fund.
According to a report by Citywire, the fund, named Hamilton Bradshaw Diversified Property Fund, will target “prime real estate” across the country.
No equity target for the vehicle was revealed but the report said the minimum it would spend on assets would be between £10 million ($16 million; €11.4 million) and £15 million.
The fund, which is expected to launch subject to the necessary approvals this autumn, would be led by Hamilton Bradshaw head, James Caan. Caan, who also star’s in British television hit business show Dragon’s Den, will be joined by ING REIM senior director Simon Latham.
Caan said that the UK commercial real estate market was at its most attractive for two years and that as a result, he would be investing ten percent of his personal wealth into the fund.
He said: “'My view is that the real estate market has hit the bottom, valuations have settled and there are opportunities to be had. Two years ago the property market got overheated but today you can acquire real estate at yields of between 7 and 8% at a cost of capital of 6%.”
Hamilton Bradshaw is the latest in a multitude of fund managers that have launched or will launch real estate vehicles aimed at taking advantage of fallen asset prices and distressed seller situations.