AWG Property has teamed up with property investment company WG Mitchell to set up a new £100m retail and mixed-use investment fund focusing on opportunities in Scotland.
The 50/50 joint venture plans to build up the fund to over £100m. Both partners will co-invest an undisclosed amount of equity, with financial backing coming from Anglo Irish Bank.
Ken Hillen, Anglo Irish Bank area manager for Scotland, said: “Both are good experienced teams. We were attracted by the asset management and development mix.”
Tony Donnelly, managing director at AWG, said: “The partnership will leverage our property development and WG Mitchell’s asset management expertise to enhance asset values, both of which will help us to maximise investment returns.”
The fund will concentrate on acquiring projects with development angles and creating additional value through refurbishments and extensions, holding onto properties for between three and five years.
AWG is planning to set up a number of property funds, including a £100m-plus office and industrial fund.
The fund’s first acquisition is a redevelopment opportunity in Airdree town centre. It has paid over £10m for the 82,500 sq ft mixed retail and office development at Graham Street and Gartlee Road.
Plans will include either refurbishment of the scheme or redevelopment of the whole site.
References: EGi News 31/01/05
