Seven Dials, an independent commercial property analyst, has unveiled its open-ended European Property fund of funds. The firm is targeting €100m (£70m) in assets under management after the first year, with initial inflows invested from the end of January.
The Guernsey-domiciled portfolio will focus on unlisted commercial property investments in Western Europe, and the firm plans to launch a global fund in the second half of next yearBrett Robinson, chief executive and sole owner of Seven Dials, says the European fund will invest in products not generally available to smaller institutions. A minimum investment level of just €40,000 is also designed to attract investment from high net worth individuals. Robinson says: “We will be able to hold some of the more interesting propositions – a lot of which are highly incentivised in ways that are difficult to do with listed vehicles. No one else offers a fund investing in these types of products in this space.”
The fund is expected to hold the bulk of its assets in Germany, France, Holland, Italy, Iberia and the Nordic region. Robinson is upbeat on the Nordic countries in particular, and points to Teesland’s Nordic Aktiv fund as a possible investment.
The €850m portfolio was launched last month, investing in Denmark, Sweden, Finland and Norway. The fund focuses on high-yielding mixed commercial properties and targets an income return of 8%.
The Seven Dials portfolio is aiming for a total return of 10% a year, through a selection of 8-15 institutional funds. The fund uses gearing at a rate of 60-65% loan-to-value, a level Robinson describes as “mid-range” in relation to comparable products.
Annual management fees are 0.95% and 0.45% for the retail A and B share classes respectively, with a trail commission of 0.5% on the A class. Initial charges are up to 3%. A performance fee of 15% of returns above 10% will also be levied.