LONDON (ShareCast) - (Sharecast News) - Fund manager and investor First Property Group has established a new fund in association with Fulcrum Asset Management, it announced on Friday.
The AIM-traded firm said the fund would invest in commercial property in the United Kingdom and Poland.

Initial investments would be focused on retail warehouses, high street shops and offices in the UK.

It said the initial investors would comprise one client of Fulcrum and First Property Group, with initial equity commitments amounting to around £10m, of which First Property would contribute £0.25m.

First Property would continue to co-invest 2.5% of subsequent equity subscriptions up to a maximum of £2.5m.

Notices for redemptions would not be given before August 2024, with redemptions taking place 12 months after any such notices were served.

Investments by the fund could be leveraged, with a maximum loan amount of 60% of the value of the investments.

First Property said it would earn annual fees from the new fund, calculated by reference to the value of the properties under management.

It would also be eligible for a performance fee, subject to exceeding an internal rate of return of 8% per annum.

"We are delighted to announce the establishment of this new fund, in particular because its investment remit spans the UK and Poland," said chief executive officer Ben Habib.

"The fact that Fulcrum Asset Management has chosen to partner with us in this endeavour is testament, amongst other things, to the excellent track record of First Property Group."

At 1300 BST, shares in First Property Group were down 1.56% at 31.01p.

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