Clavis Walden to launch commercial real estate fund

Wednesday, September 09, 2009

The fund will predominantly deal in properties that can be leased out to businesses.

By Jenifer Courtney

Commercial real estate company Clavis Walden has revealed that it intends to launch a new property fund to take advantage of business space leasing opportunities.

Due to be launched in November, the Property Authorised Investment Fund will be the first of its kind to pay out dividends to investors on a gross basis, City Wire reports.

The vehicle will put 80 per cent of its capital directly into commercial property, while the remaining 20 per cent will be in listed securities.

According to the news provider, Clavis Walden co-founder Iain Keys suggested that there is strong market demand for such an initiative.

"We believe commercial property is a long-term concept backed by the fundamentals of the asset class," he was quoted as saying.

"Investors are seeing the opportunity and are more comfortable with the UK economy."

Last month, Oliver Gilmartin, senior economist at the Royal Institution of Chartered Surveyors (Rics) claimed that commercial property stocks have been rallying recently.

Source: ask-re The Property People LLP