CMC Capital eyes a €200m fund

CORK-BASED property investment group CMC Capital is taking its first step into the US and British property markets with the aim of building a €200m fund.

CMC launched its latest property investment syndicate yesterday which will focus on raising funds for investment mainly in the commercial property markets in Europe, Britain and the US.

The minimum investment in the syndicate, which closes at the end of June, is €100,000.

CMC director Derry Crowley said people are understandably concerned about preserving their capital right now but “want to achieve growth so that the value of their money is not eroded by inflation”.

He said that under this structure investors can participate in the growth potential of commercial property, in Europe’s most stable economies, but with assurance from a bank that their investment sum will be returned regardless of the performance of the property investment.

The 100% capital security syndicate will look to particularly focus on the German market in Europe, while also looking at Britain and the US which have seen declines of 10% to 25% in commercial property pricing in the last 12 months.

“Both had enjoyed booming property markets in recent years, and have consequently been the main casualties of the subprime led financial crisis. Lower prices make these markets attractive again.

“Interest rates in both countries have dropped, and may fall further, making the cost of borrowing cheaper, and investments more profitable,” said Mr Crowley.

“The combination of lower pricing, low interest rates, and a strong euro has opened up a window of opportunity.”