Fund Management
Octopus Investments Opens New Commercial Property Fund
UK fund manager Octopus Investments has opened a new fund aimed at the commercial property market.
UK fund manager Octopus Investments has opened a new commercial
property market fund.
The company has raised £130 million ($210 million) for the
Commercial Real Estate Debt Fund launch and it will be managed by
Dragonfly Property Finance - the property finance arm of
Octopus.
Funding has been provided by Octopus and a broad range of
third-party institutional investors. These investors include a
leading European family office and a number of pension funds.
“We are delighted to have been able to offer institutional
investors access to this exciting asset class,” said Simon
Rogerson, chief executive of Octopus Investments. “There is a
real demand from investors for commercial property debt while
Dragonfly’s track record in providing finance to entrepreneurs
and property professionals is exceptional.”
Dragonfly is targeting an annualised internal rate of return of
11–12 per cent for the fund.
The UK’s commercial property sector has performed increasingly
well in recent months, with rental and capital growth benefiting
from the wider economic recovery.
Octopus’ launch of the Commercial Real Estate Debt Fund follows
swiftly on the heels of its acquisition of MedicX Holdings, the
UK healthcare real estate investment manager.
MedicX manages over £0.9 billion of funds across the LSE-listed
MedicX Fund and two private closed-ended institutional funds.
