Islamic investment bank, Gulf Finance House (GFH), has launched the Gulf Atlantic Real Estate II fund (GARE II) following on from the success of its initial commercial property fund Gulf Atlantic Real Estate (GARE).

The launch of GARE II follows research into the UK commercial property market which identified strong investment opportunities. GFH found that over the last six months commercial property prices had fallen 25% below its peak, offering high quality properties with the opportunity of significant income yields.

The primary objectives of the fund will be to produce a high cash yield and to generate capital growth as the UK property market recovers. GARE II will identify properties which are well located, income producing and let to good quality tenants.

Nick Judd, head of real estate fund management at GFH and fund manager of GARE II, said: “Twelve months ago, indiscriminate, highly geared buyers had driven prices far beyond any measure of fair value. Today, with UK commercial property values having fallen so dramatically, we have the opportunity to buy income producing properties at prices well below their recent peaks. UK commercial property is the market of choice for many international investors who regard it as relatively low risk, transparent and liquid compared to many other markets.”