Halladale Group plc, the UK property co-investment, trading and development company, announced that it has launched the Halladale Nelson Limited Partnership, its first property fund aimed at the private investor market. Halladale has invested 10 per cent of the equity. The Fund has completed its first acquisition by way of the purchase of a £10 million portfolio of properties from Halladale.
At its first closing date the Fund has raised a total of £4 million. The Fund will remain open for further investment with additional closings until it reaches a fully invested stage, expected March 2005. The estimated final buying power of the Fund, which will have a life span of 7 years, is in excess of £30 million.
Halladale Nelson is an income based fund seeking to deliver a 6.5% per annum income distribution to investors from a spread of properties, principally in the retail and office sectors. Halladale will asset manage the property portfolio.
The first £10 million portfolio comprises 4 retail properties in Maidstone, Reading and two in Southampton. Halladale has sold these assets from its own portfolio to provide the initial properties for the fund at an average property yield of 7.54%. All assets have been independently valued by FPD Savills. Further acquisitions will take place in due course to expand the fund to its intended level.
David Lockhart, Chief Executive of Halladale, commented:
'We are very pleased to announcement the successful completion of phase one of Halladale´s first fund for private investors. With our diverse and active approach to asset management, Halladale will look to deliver attractive returns to our investors. Earlier this month Halladale launched its first institutional fund with Citigroup Property Investors.'