Rockspring Property Investment Managers has held the first close of Rockspring UK Value 2, having secured GBP71.5 million from three investors, comprising institutions from Europe and Australia.
A second closing for a further GBP75 million is scheduled for the end of June.
Rockspring is targeting an overall equity raise of over GBP300 million by the final closing, which is anticipated to take place in late 2014. With leverage, this will allow Rockspring to create a portfolio of over GBP600 million.
UK Value 2 will target core plus opportunities across the UK and the first close will enable Rockspring to transact on its initial pipeline. The fund will have a duration of seven years, with a target IRR of 12.5 per cent per annum.
UK Value 2 follows on from the fully invested Rockspring UK Value Fund, which was launched in 2009.
Robert Gilchrist, chief executive of Rockspring, says: “The success of the first close of the Fund and the support from existing and new investors reinforces our confidence in the broad recovery of the UK property market. We believe that this is a sustainable recovery that goes beyond yield compression and is based on favourable occupational dynamics. This should enable us to generate strong rental growth from high quality assets supported by our professional asset management expertise. I am confident that Rockspring, in its 30th year, will deliver strong returns for investors in UK Value 2.”
Richard Bains, partner – fund management, says: “We are seeing significant demand for core plus real estate investment strategies in the UK, and our track record in this space positions Rockspring strongly to deliver another successful fund with UK Value 2. We have already identified a number of acquisition targets and look forward to deploying the first tranche of equity, and raising further commitments, as we look to create a high quality GBP600 million portfolio of UK property over the coming years.”