A UK property company and two real estate brokers are joining forces to launch a £300 million ($426 million; €334 million) UK retail property fund to take advantage of falling prices in the sector.
Sovereign Land is teaming up with Chris Geaves, a UK retail broker at property services firm Strutt & Parker and Max Le Frenais, a founder of retail and leisure property focused firm Kitchen Le Frenais Morgan to manage the vehicle.
Geaves is a 17-year veteran broker at property services firm Strutt & Parker, who will be winding down his position as head of retail at the firm.
The fund will focus on UK shopping centres, a sector which has been targeted by increasing numbers of incoming opportunity style funds looking to take advantage of perceived pricing corrections in Europe’s most mature real estate market.
Matrix Funds Group has been appointed as its principal placement agent and the partners of the fund said they anticipate a first equity closing by the third quarter of 2009.
Strutt & Parker will provide the fund with property advice and Strutt & Parker Real Estate Financial Services will be the operator of the fund.