Dragons' Den star Caan teams up with ING for commercial real estate fund
Hamilton Bradshaw, the private equity business of entrepreneur James Caan, is planning the launch of a new UK commercial property fund in partnership with ING Real Estate Investment Management (ING REIM).The Hamilton Bradshaw Diversified Property fund will launch in the early autumn, exact date to be confirmed.
The fund will focuson prime commercial real estate across the UK, employing a conservative investment strategy that targets properties with strong covenants and long leases which can deliver stable cash flows.
Hamilton Bradshaw will act as a property adviser to the fund, with ING REIM acting as Fund Manager.
“I believe the commercial property market is as attractive as it has been in the last few years,” commented James Caan, who is also backing the fund with a portion of his personal wealth.
“My view is that the real estate market has bottomed out, valuations have settled and there are opportunities to be had. Two years ago the property market got overheated and, at that time, yields were only between 3 and 4% for prime real estate, with capital cost around 6%. However, today you can acquire good quality real estate at yields of between 7 and 8% per annum and the cost of capital is still circa 6%.”
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