Home Commercial Property UK to get £200m boost from Singapore sovereign wealth fund

UK to get £200m boost from Singapore sovereign wealth fund

by LLP Editor
17th Apr 12 9:28 am

London’s property market is set to receive more investment from foreign buyers after Singapore’s sovereign wealth fund announced it would target distressed UK properties with a £200m fund.

Property in the UK, and the capital in particular, has become increasingly popular with foreign buyers looking for a good value and secure investment. The Government of Singapore Investment Corporation (GIC) is the latest example of overseas buyers launching an investment drive.

Sovereign wealth funds from Asia and other investors from the region were responsible for 30 per cent of all commercial property deals in the capital in 2011.

GIC, which holds in excess of $100bn (£63bn) in assets, is one of the world’s largest sovereign wealth funds. It currently owns a 17.5 per cent stake in Kent’s Bluewater, the UK’s fourth largest shopping centre.

The UK property acquisition drive will be launched with London-based investment manager Orchard Street Investment Management.

Orchard Street chairman Chris Bartram said the fund will look to purchase 15 properties in the next two years with a total value of between £15m and £50m. The fund will look to buy up properties in the office, retail and industrial sector in London and across the UK.

GIC previously launched a fund with Orchard Street in 2008, which acquired assets with a total value of £130m.

Bartram, who is also a non-executive director of Land Securities and a Crown Estate commissioner, said: “We are delighted that GIC has agreed to partner with Orchard Street Investment Management for a second time.

“The first Special Situations Fund launched in 2008, made its major investments in 2009 and has been a great success so far. We have enjoyed working with GIC and look forward to this new collaboration.

“The object is the same as for the first fund, which is to buy assets with active management potential for improvement.

“This style of investment is an area of particular experience and expertise for Orchard Street, and which we believe has the potential to generate higher than normal market returns.”

In January, Orchard Street reported that it had increased its assets under management by £800m in 2011 to reach £2.5bn. It completed £580m of investment transactions last year.

Orchard Street advises on the investing in property assets such as shopping centres, offices, retail warehouses and industrial facilities.


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