Blue Marble Asset Management has launched a commercial property investment fund aimed at high-net-worth individuals and professional investors.
In conjunction with fund manager Infinity, the Birmingham, England-based property investment and asset management business has launched the Blue Marble Property Fund 1 LP to raise £10 million ($13 million) to invest in six to eight commercial properties across England and Wales.
Targeting an internal rate of return of between 7 percent and 9 percent, which includes an annual cash return of 4 percent over a projected period of five years, the fund has already secured £2 million ($3 million) of capital from a cornerstone investor. The fund has identified two properties, valued at £3.1 million ($4 million), which will be transferred into the Fund at day one to provide an immediate return to investors.
“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,” said Ed Jones, Blue Marble investment director.
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 added, “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.”
These properties will have between one and four years unexpired lease terms and can be acquired at a good discount to market value.
Tim Matthews, Blue Marble chief executive, believes 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.
“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,” said Matthews.