Property fund poised for purchases - commercial mortgages

07 April 2008

In news which may interest those seeking commercial mortgages for new property ventures, a £1 billion fund has been set up to make the most of new buying opportunities that may arise.

Entrepreneur Gerald Ronson has put together the fund under the Heron International company name, which consists of £200,000 in cash and the rest in borrowing and projected partnerships with other investors, the Times reports.

Mr Ronson told the paper that when any unwise investors made errors and were exposed by the difficulties of the current market this could create opportunities for his firm to acquire bargains.

He said he would bide his time and wait for these patiently, stating: "Property is a long-term business which some appear to have forgotten."

While some property funds have been set up to take advantage of lower priced commercial property, others have been suspended to prevent investors withdrawing all their money.

Some of those denied access to their assets have now threatened to sue over the matter, the Financial Times reports.