Commercial Finance Specialists

A new asset financing property fund will aim to give stakeholders a 100 per cent return on their development investment within seven years.

The CR Property buy-to-let investment fund has been formed by British Land, King Sturge and Charles Russell, reports FT Adviser.

Director of property acquisition at Charles Russell Richard Crosthwaite believes that as many as 500 properties could end up on the fund's portfolio.

He told the newspaper: "It is not a seven-year fund, but it will have a seven-year lifespan, when we hit our target of 100 per cent return to investors.

"If it happens early we could liquidate early, but we could extend it if the market conditions aren't right."

The fund could be at risk of falling foul of commercial property overvaluations, which stakeholder King Sturge earlier this month predicted could be likely to occur in 2010.

The Commercial property consultant suggested that if this occurs, capital values would fall within seven years, beginning in 2012.

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