Property Partner launches ‘opportunistic fund’ targeting distressed sellers in weak housing market

By Roger Baird on Monday 21 January 2019

Alternative Lending

The property platform said its fund aims for annual returns of ‘at least 10 per cent’.

Property investment platform Property Partner said it will launch an ‘opportunistic fund’ targeting distressed sellers in a slowing UK market.  

The firm said it would bid to pick up properties in a weakening British housing market hit by Brexit fears and fragile consumer confidence, that still offered opportunities to “experienced investors who can move at speed”.

The move comes as house prices in some of London’s most expensive areas, such as Westminster and Kensington and Chelsea have fallen by as much as 25 per cent, or £500,000, over the last 12 months, according to estate agent Your Move.

This follows a survey by Royal Institution of Chartered Surveyors, which said last week house prices were falling at their fastest rate in six years, and that the outlook for sales was the weakest in two decades.

Property Partner said its fund will target residential and student accommodation blocks in lot sizes between £500,000 and £2m, in cases where “vendors are highly motivated to sell.”  

The business added it planned to return “at least 10 per cent” a year to investors over 18 months.

Property Partner, chief investment officer Robert Weaver said: “The opportunistic fund will enable Property Partner to move fast as a cash buyer on properties where vendors are highly motivated to sell. Very often these are receivership sales or properties where debt costs have extinguished developer returns.

He added: “We are seeing more and more of these opportunities through our network as the market softens and demand from mainstream investors is increasingly constrained by the current climate of political and economic uncertainty.”

Since Property Partner was founded in 2015, over 13,000 individuals have invested in 900 properties, worth around £133m, under the company’s management. The platform recently announced it sold its first two London properties worth £235,000 and £326,000, reliasing profits of up to 43 per cent.

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