Rockspring Property Investment Managers LLP announced the final closing of Rockspring UK Value Fund, a closed-ended English Limited Partnership focused on commercial property in the UK which offers scope for near term capital appreciation and income growth.
At final closing, Rockspring had secured commitments totalling £336 million from 12 international institutional investors from four countries. Allowing for gearing, the Fund's spending power totals approximately 700 million.
The Fund focuses on small to medium sized assets primarily in the office, retail and industrial sector, targeting properties which have the ability to offer either an existing relatively high cash yield or the potential for yield growth enhanced by a modest level of gearing. There is no pre-determined geographical or sector allocation, allowing a flexible approach to acquisitions, whilst maintaining an appropriate diversification of risk. It is targeting a net annual distribution yield of 7% and a net total return of 13% per annum. The fund's duration is seven years, with a two year investment period.
To date, the fund has acquired assets totalling £82m, including:
The Precinct, Blaydon on Tyne, Tyne and Wear (Retail - £10.1 mln)
The Mall, Aberdeen (Retail - £47.4 mln)
65 Southwark Street, London SE1 (Office - £8.6 mln)
Exchange House, Midsummer Boulevard, Milton Keynes (Office - £15.8 mln).
A strong pipeline of further investment opportunities is currently being progressed.
Neal Shegog, Partner at Rockspring, is the Fund Director of Rockspring UK Value Fund, while Richard Bains is the Fund Manager.
Neal Shegog, Rockspring UK Value Fund Director, commented: "Our ability to raise this significant amount of equity in this market is a strong reflection of our track record of delivering attractive returns for our investors. With its value driven approach, the Fund will look to provide a sustainable income stream which we can grow through active asset management. With the benefit of our local market knowledge and experience, we consider the Fund well placed to capitalise on opportunities in the UK market and, with our team's long established local market presence in the UK, we look forward to identifying further acquisitions."