Wealth Manager - the site for professional investment managers

Register to get unlimited access to all of Citywire’s Fund Manager database. Registration is free and only takes a minute.

Property debt investment fund targets 6% yield

Property debt investment fund targets 6% yield

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.’

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Your Business: Cover Star Club

Profile: The godfather of fund-of-hedge-funds on the sector's future

Profile: The godfather of fund-of-hedge-funds on the sector's future

When Dixon Boardman started 26 years ago ‘there were 600 hedge funds and only 100 had $100 million – it was not even a cottage industry,’

Wealth Manager on Twitter