A NEW Harrogate-based investment fund has raised nearly £15 million in nine months.

The Longcross Property Investment Fund, which specialises in the acquisition of commercial and residential property, is now targeting the raising of a further £10 million by the end of its first year.

The fund is managed by the Harrogate-based Ripley Asset Management, run by Michael Hardman, former partner in Yorkshire Bank’s structured property finance team, and Julian D’Arcy, former chairman of the northern region of property consultancy Knight Frank.

Mr Hardman said: “The fund is performing very well indeed and is now close to £15 million in size. Our target is to take it to £25 million in our first year, before pushing on towards £50 million and ultimately £100 million-plus.

“We are delighted to have made so much progress already during a challenging time, both for the British economy and the property market”.

He said the collapse in property market values over the last three years, coupled with the lack of finance in the market, meant there were opportunities to buy commercial property at competitive prices.

The first series of acquisitions by Longcross, including a range of office units in the Home Counties, is providing an investment return of more than 12 per cent.

Mr Hardman said: “We are delighted with the return so far. Meanwhile, our borrowing is now down to 30 per cent from 50 per cent in October, which gives us increased spending power. Our emphasis is now expanding the fund and its assets.”

Mr D’Arcy said: “Our vision as asset managers is to select stock that will perform through active asset management. We will only borrow at around 50 per cent and believe in the current climate growth can be delivered by consistent income streams and utilising a full cash sweep to pay off the debt.”