Intermediate Capital is targeting a yield of 6% from an investment company specialising in UK commercial property debt launched through its subsidiary ICG-Longbow.
The ICG-Longbow Senior Secure UK Property Debt Investments fund will aim to raise £100 million through an initial public offering on the London Stock Exchange and will be capped at £250 million.
The investment company is aiming to capitalise on estimates there will be a £44 billion shortfall in the supply of senior debt in the UK commercial property sector. It will make new individual loans with a maximum exposure of 65% loan to property value.
The fund aims to be fully invested within six to nine months of launch as it strives to hit its yield target.
The chairman of ICG-Longbow, David Hunter, said in a statement, ‘This new vehicle will aim to provide investors with predictable and attractive target returns with minimal risk of income or capital loss.
He added: 'The team at ICG-Longbow has many years’ experience of investing in the UK commercial property debt market and we are excited at the opportunity to open up this expertise to a wider audience.’