Commercial property lender Business Lending Ltd is to launch a new commercial credit fund.
The fund will invest in medium-term loan notes secured on UK commercial property, and be managed by Brandenburg Securities.
Business Lending Ltd’s managing director, Stuart Parfitt says recent events have “ripened” the opportunity to invest in commercial property.
Mr Parfitt noted the market “has had a torrid time over the last 16 months but with values down by over one-third, the market is beginning to look attractive again for investors”.
William Brooks, managing director of Brandenburg Securities said a fixed-rate option could be available if there is sufficient investor appetite.
“We have initially targeted investors with a direct exposure to UK commercial property, who know and understand the dynamics of that market, but are perhaps cautious about increasing exposure at this time,” he explained.
UK commercial property losses were 18.2 per cent for the 11 months to November, according to Investment Property Databank figures.