14 Nov - Appian launches €50m commercial property fund
Appian Asset Management (Appian) has joined forces with Burlington Real Estate to launch a new specialist investment fund for the Irish commercial real estate market. The new fund, called the Appian Burlington Property Fund, expects to invest approximately €50 million over the coming 12 - 18 months in a mix of office, retail and industrial units in the Dublin suburbs and in other large cities.
Appian will manage the fund. Burlington Real Estate will provide property investment advice and management services for properties in the fund. Appian manages and advises on approximately €800 million of client investments across a range of investment types. Burlington Real Estate was set up in 2012 by the former Treasury Holding management team, John Bruder and Niall Kavanagh. The company is a property investment and development management company operating across all sectors: office, retail, residential and industrial.
Speaking today, Kevin Menton, Director of Appian, said that the fund was designed to produce an income yield to investors of at least 5% p.a together with capital value growth in the medium term*. Given very low interest rates, Appian believes the targeted return should prove attractive to investors. The Fund is restricted to qualifying investors and the minimum investment is €100,000.
John Bruder, Managing Director of Burlington Real Estate, said that the fund would target properties in the €5 million to €15 million price range typically in the Dublin suburbs or in regional cities. Speaking today, Bruder said; “we believe there is real value to be had in the Dublin suburbs in particular. It is increasingly difficult to find attractive opportunities to invest in hot spots like Dublin 2 and Dublin 4, but in the suburbs there are good opportunities which offer a good yield and the potential for significant capital appreciation.”
The Appian Burlington Property Fund is established as a sub-fund of the Appian Investments ICAV (Irish Collective Asset Management Vehicle) which has been established by Appian. The ICAV is authorised by the Central Bank of Ireland. Declan Moylan, former Managing Partner of Mason Hayes & Curran, will chair the ICAV.
*This is a target return only and not a profit forecast. There can be no assurance that the target can or will be met and it should not be seen as an indication of the Fund’s expected or actual results or returns.
Issued on behalf of Appian Asset Management by Gordon MRM
Ray Gordon