F&C REIT to launch open-ended UK property fund
* Units for sale at 100 pence each from Monday
* Fund aims to exploit UK property discounts
LONDON, June 27 (Reuters) - F&C REIT, the property arm of asset manager F&C Asset Management (FCAM.L), is launching an open-ended UK property fund to acquire discounted commercial properties while the market recovery loses steam.
Sales of units in the F&C UK Property Fund start on Monday and will run for four weeks at a fixed price of 100 pence each.
The fund will be managed by Julian Smith and Guy Glover of F&C REIT.
"As the economy slowly recovers, we anticipate the demand for property will increase and, given low cash returns, believe that the opportunity cost and yield for commercial property is very attractive," Smith said in a statement.
"Market forecasters are currently predicting upgrades for 2010," he said, referring to the "sharp falls" that plagued the property market in 2008 and 2009.
Earlier this month, benchmark provider Investment Property Databank showed a further slowdown in UK commercial property values in May. Experts predict more declines in return from UK commercial real estate in 2011. [ID:nWLA6252] [ID:nLDE64R0UI]
F&C REIT, which has bought more than 1 billion pounds ($1.5 billion) of real estate in the last 18 months, will seek to add value through asset allocation, stock selection and active management of property assets to enhance their rental value.
The fund will have daily pricing and liquidity with the underlying property investments valued on a monthly basis. Additionally, as the fund matures, it is expected to retain a cash position to manage liquidity. (Reporting by Deborah Cicurel; Editing by Andrew Macdonald) ($1=.6680 Pound) (See www.reutersrealestate.com for the global service for real estate professionals from Reuters)