The Puma Property Fund, Shore Capital’s latest venture targeting commercial property investments in the UK, has held a first closing three months after its launch, receiving £20m in commitments from investors.
Shore is hoping to raise up to £100m from institutional investors looking to redress their asset allocation in favour of real estate following the recent fall in the financial markets. Shore Capital and Dawnay Day, the real estate investor that will advise the fund, have both made commitments of £2.5m to the fund.
The fund is looking to make UK commercial property acquisitions of up to £100m, primarily by leveraging its investments by up to 80 per cent. The actively managed fund will have a seven-year life and is targeting commitments as low as £10,000 via a Guernsey regulated closed ended unit trust which it hopes will attract private individuals in the UK and overseas.
Both Dawnay Day and Shore Capital believe the recent drop in medium-term interest rates has improved the current opportunity for property acquisitions. Dawnay Day’s Guy Naggar described the current property investment market as ‘particularly opportune’, with Howard Shore of Shore Capital adding that recent volatility in the financial markets made this an ideal opportunity to invest in alternative investment opportunities.
Puma Property has set up an investment committee chaired by Cyril Metliss, a director of British Land. Other committee members are Howard Shaw, Dawnay’s CEO Peter Klimt and Guy Naggar, his chairman, and Peter Sable, a South African private investor with experience in property.
Shore Capital has a strategic partnership with the Bank Leumi Group, the Israeli bank, which holds approximately 20 per cent of Shore Capital. Shore Capital has been active in private equity investing since 1996, managing development capital funds Puma I and II.
Shore Capital and Corporate is acting as sponsor for the fund.