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LONDON (Alliance News) - First Property Group PLC Wednesday said it has won a new fund management deal with an existing pension fund client to establish and manage a new property investment fund.
In a statement, the fund manager said the Shipbuilding Industries Pension Scheme has committed a minimum of GBP125 million to the new fund for an initial term of 10 years. The fund will be unleveraged and will target a net total return of 7% a year or more from investments in property in the UK.
"The investment remit is broad, encompassing both investment and development properties across all sectors, including offices, retail, industrial and residential. First Property Group will earn annual fees from the new fund calculated by reference to the value of the properties under management," it said.
First Property Group shares were up 3.4% at 34.90 pence Wednesday morning.
By Steve McGrath; stevemcgrath@alliancenews.com; @stevemcgrath1
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