Blue Marble Asset Management (Blue Marble) has launched a commercial property investment fund aimed at high net worth individuals and professional investors.
In conjunction with fund manager Infinity, the Birmingham-based property investment and asset management business has launched the Blue Marble Property Fund 1 LP to raise GBP10 million to invest in six to eight commercial properties across England and Wales.
Targeting an internal rate of return of between 7 per cent and 9 per cent, which includes an annual cash return of 4 per cent over a projected period of five years, the Fund has already secured GBP2 million of capital from a cornerstone investor. The Fund has identified two properties, valued at GBP3.1 million, which will be transferred into the Fund at day one to provide an immediate return to investors.
Blue Marble Investment Director Ed Jones says: “The Blue Marble Property Fund will appeal to investors looking to invest in commercial property, who are seeking to spread their risk across a number of commercial property investments. We have a demonstrable track record in resourcing those investments that offer the best prospects for rental and capital growth.”
In its new property fund Blue Marble will seek to replicate the successful investment model it has created for a group of investors it advises, including Pemberstone, the Coalfields Regeneration Trust, local authority investment funds and high net worth individuals.
Jones adds: “Our approach is based on protecting our clients’ capital, filtering down the many opportunities to identify and acquire properties which will perform for the fund. These will be predominantly modern warehouse and office premises which we believe offer good prospects for rental and capital growth, and to which we can add value through our asset management expertise.”
“Typically these properties will have between one and four years unexpired lease terms and can be acquired at a good discount to market value. With the UK’s departure from the EU next March looming even closer we feel that some market uncertainty will creep in, which will lead to a better buying environment.”
Blue Marble Chief Executive Tim Matthews believes that the transparent nature of the fund’s investment policies, and the fact that is it is based outside London and will target properties predominantly in the Midlands and North of England, will make the fund particularly appealing to regional investors.
He says: “Each of our investors will know all about the properties in which the fund invests, and the detailed asset management plans to be implemented to achieve the planned returns. Our central Birmingham office will undoubtedly make us more accessible to potential investors from the Midlands and North.”
Infinity director Sarah Butler says: “We are delighted to be working with Blue Marble on the launch of its new commercial property fund. We believe it’s another great opportunity that is attractive to investors looking to add commercial property to their portfolio.”