Investment Strategies

BDO Stoy Hayward Starts UK Property Fund

Tom Burroughes Editor London 25 September 2009

BDO Stoy Hayward Starts UK Property Fund

BDO Stoy Hayward Investment Management has launched the UK Strategic Income Property Fund in conjunction with COBA Asset Management and property consultants Strutt & Parker.

This new venture will be a UK commercial property fund created to generate income by exploiting high initial yields from a depressed property market, BDO said in a statement.

The fund will target a total return of 10 per cent, including an annual distribution of 5 per cent to 6 per cent once fully invested with an expected life of up to seven years. Profits will be distributed as proceeds from sales, or at the end of the fund's term.

There have been recent signs that the UK property market is recovering. The UK commercial property market showed capital growth last month for the first time in 26 months, Investment Property Databank (IPD) reported earlier this month.

Its monthly index showed a returned to positive capital growth for UK commercial property in August for the first time since June 2007.

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