F&C Ready to Launch New Property Venture

F&C REIT, the property arm of asset manager, F&C Asset Management, is launching an unrestricted UK property fund to obtain discounted commercial properties whilst the market recuperation loses its hold.

Sales of units in the F&C UK Property Fund start on Monday and will run for four weeks at a set price of 100 pence each.
The fund will be steered by Julian Smith and Guy Glover of F&C REIT.

As the financial system slowly makes a recovery, we predict the demand for property will see an increase and, given low money returns, believe that the opening cost and yield for commercial property is very striking, Smith said in a statement.

The market forecasters are, at present, predicting upgrades for 2010, he said, in reference to the ‘sharp falls’ that overwhelmed the property market in 2008 and 2009.

Previously this month, standard supplier Investment Property Databank showed an additional slowdown in the UK commercial property values in the month of May. Specialists predict further declines in response from the UK commercial real estate in 2011.

The fund will have every day pricing and liquidity with the fundamental property investments that will be valued on a monthly basis. In addition, as the fund matures, it is projected to keep hold of a cash position to direct liquidity.