UK property fund to target 6.4% dividend yield – again

Canary-WharfA property fund is aiming to emulate another of its investment strategies in UK property that saw a dividend yield in excess 6.4% per annum.

First Property has begun to solicit investor interest to establish a new UK commercial property fund. The Fprop Sterling Income Fund (FSIF) is expected to follow a similar investment strategy to its UK PPP fund, which is an ungeared UK commercial property fund established in February 2010 on behalf of three pension fund clients of Stamford Associates.

The properties acquired on behalf of the earlier fund were purchased at an average net initial yield of 7.5%, with a weighted average unexpired lease term in excess of 12 years.

Ben Habib, CEO of the First Property and CIO of FPAM, said:

“FSIF will seek to mimic the investment style and returns of the UK PPP fund we launched in 2010, on our return to the UK, after having largely exited the UK market at its peak in 2005/7.”

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