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Property guru to launch fund

Property veteran and former Slough Estates chief executive Roger Carey is set to launch a new property fund to take advantage of bargain opportunities in the depressed real estate market.<br /><br />The UK Strategic Income Property Fund will be managed by Graham Gould from Cobra Asset Management and BDOStoy Hayward Investment Management, and will take advice from property consultants Strutt &amp; Parker.<br /><br />But sources said investors would be paying a hefty sum for the involvement of industry heavyweights like Carey and Gould.<br /><br />Investors will be charged a fee of up to six per cent to enter the fund and must make a minimum investment of &pound;100,000.<br /><br />The six per cent fee is made up of: an entry fee of two per cent; an annual management fee of one per cent of the gross asset value of the fund; and an adviser fee of up to three per cent.<br /><br />Management will also take 20 per cent of anything earned over a 10 per cent total return target. Most funds would not charge the steep three per cent adviser fee.<br /><br />&ldquo;It seems as though the fund is doubling-up on management fees and outsourcing advisers,&rdquo; one industry source said. <br /><br />BDO&rsquo;s investment property director Robert Walter said: &ldquo;If you were to compare this to a larger institutional fund it would seem expensive, but this is a specialised vehicle and I believe it to be similar to what other funds of this type charge.This is a high quality team.&rdquo;<br /><br />The group is hoping to lure investors over the next couple of months and expects to close its doors in the first quarter of next year with at least &pound;100m.<br /><br />ROGER CAREY<br />FORMER SLOUGH ESTATES CHIEF EXECUTIVE<br />Roger Carey, 64, has more than 40 years of experience in the property sector, making him one of the industry&rsquo;s highest profile characters. <br /><br />A former chartered surveyor, Carey spent 14 years at MEPC and is a past president of industry body the British Property Federation.<br /><br />Carey joined Slough Estates (now rebranded as Segro) as a director from 1983 to 1996. In 1997, he became chief executive of Saville Cordon Estates, leading a management buy-out in 2002. The company, renamed Industrious, was subsequently sold to Brixton in 2005 for &pound;460m then on to Dunedin in 2006 for &pound;600m.<br /><br />In his spare time, Carey enjoys playing tennis and golf, and counts his collection of vintage Aston Martin cars as his prized possessions.<br /><br />Carey&rsquo;s friendship with Graham Gould, who founded Residential Property Investment Management in 1999 and COBA Asset Management in 2003, has led him towards this latest venture of a UK strategic home income property fund.