A leading property investment platform announced on Monday that it is launching an opportunistic fund.
Property Partner, which was launched in January 2015 by Daniel Gandesha, said that the current political and economic uncertainty is causing the UK property market to slow, with sellers who need to sell coming under significant pressure as a result. These conditions, the platform argues, offer an ideal opportunity for experienced investors who can move at speed.
“The opportunistic fund will enable Property Partner to move fast as a cash buyer on properties where vendors are highly motivated to sell,” Robert Weaver, chief investment officer of Property Partner, said.
“Very often these are receivership sales or properties where debt costs have extinguished developer returns. We are seeing more and more of these opportunities through our network as the market softens and demand from mainstream investors is increasingly constrained by the current climate of political and economic uncertainty.”
Property Partner’s objective is to buy up property assets at a discount to valuation in the current period of high investment uncertainty. The fund will target UK residential and student accommodation blocks in lot sizes between £500,000 and £2 million, as well as seeking opportunities ‘to unlock and add value by employing in-house asset management expertise, undertaking improvement work or overcoming practical and legal obstacles beyond the scope and skillset of most individual investors’.
The target net total return of the fund is at least 10% per annum to investors over a period of 18 months, with shares in the fund tradeable on Property Partner’s resale market during this term.
More than 13,000 people have invested in property through Property Partner since the platform launched four years ago. It now manages over 900 tenanted units valued at in excess of £133 million.