Norwich Union has reopened its property fund to new investors for two weeks. The fund, which closes on October 31st, currently has £40 million (€51 million) in assets represented primarily by office and retail properties.
BCP Stockbrokers, which is raising the new funds from investors, believes property funds in general are likely to continue enjoying consistent growth each quarter due to recent stock market volatility. For example, the average managed fund return for the quarter was negative 2.5 per cent, whereas the average property fund return was positive 5 per cent. To date this year, Irish property funds have witnessed inflows of £100 million.
BCP says the future outlook for commercial property remains positive. Norwich Union predicts growth in the Irish commercial property market of nearly 15 per cent a year over the next three years. It claims the UK commercial market is at the beginning of a growth cycle and anticipates 12 per cent growth per annum in this sector over the next three years.
The Norwich Union property funds offer lump sum investors access to Irish and UK commercial property for a minimum investment of £5,000.
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