Investment house Blackmore is expanding its property arm into the residential sector, with its Blackmore Bond funding both residential and commercial property development projects. It’s first time Blackmore has played in the resi field.
The bond will offer investors a fixed return over a term of four or five years, and aims to give retail investors – not just banks, institutions and HNW types – access the residential property market.
The idea is to acquire under market value, develop properties, then sell at a profit. Blackmore aims to deliver investors 8.9% or 9.9% return.
BNP Paribas Real Estate has been picked to provide lead advice on acquisitions, with Associate Director for Capital Markets Ricky Poonia running point for BNPPRE. It’s likely that Blackmore and Poonia will be looking mainly at development projects, student accommodation and the build-to-rent sector.
Phillip Nunn, Chief Executive of The Blackmore Group: “This is an exciting time for The Blackmore Group with our launch of the Blackmore Bond, and we need to ensure we are receiving the best advice from a leader in the residential investment and development sector. Working with the residential capital markets and investment team at BNPPRE will ensure the best returns for our clients and a new, leading investment product.”
Ricky Poonia: “We are delighted to have been appointed as advisers to The Blackmore Group, who already have a well-regarded reputation as investment managers. Our strong and in-depth understanding of the residential property market throughout the UK ensures we will be giving the best advice to ensure maximum returns for their clients.”