£1 billion property buyout


Laxey Partners will launch a £1 billion fund to buy property shares, it has been reported.

Initial fundraising will generate cash from investors who are keen to capitalise on falling commercial property prices.

A huge debt facility from Credit Suisse has been arranged and the fund, called Terra Catalyst, will float on the alternative investment market in February.

In a report carried by the Times, Colin Kingswood who will oversee the fundraising said: "Unlike many people, we do not believe the end of the world is nigh for commercial property and there is a great chance to pick up shares."

Foreign investment in London offices and commercial property remains strong and has helped dispel fears of a property crash.

News for one fund was less positive – the UK Commercial Property Trust reported the value of its West End office holdings fell by 13 per cent over the last quarter of 2007, Property Week has reported.