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The popularity of investment companies and funds rushing to invest in ‘real estate’ in fast-developing markets, such as India or Eastern Europe and resurgent ones such as Germany and Japan, has been an important feature of the property gold rush. And although India-focused Trinity Capital, the biggest property fundraising on AIM this year, trades ten per cent below the 100p at which it attracted £250 million in May, November newcomer Ishaan Real Estate managed to raise an almost-as-impressive £207 million to invest in the same market. Ishaan’s original £180 million offer was over-subscribed as numerous investors were captivated by Ishaan’s focus on IT parks and Special Economic Zones. Its eight-strong initial portfolio has already been valued in excess of £440 million and further wise investments should make it an interesting punt.

Closer to home, Dawnay Day Trevaria, focused on German retail property, has made like Oliver Twist, and charmed another c300 million from the market at c1.12 – less than a year after it raised its original c444 million at c1. Dawnay Day’s interim results to June showed adjusted NAV per share rising 10.2 per cent to 106.5c. A 2c dividend was proposed.

Different niches
Three other funds, each in a different niche, arrived in November after pocketing a collective £380 million.

Northern European Properties, with its eyes on c750 million of property in the Nordic and Baltic regions, was the most ambitious and hauled in c350 (£237) million at 105c a share for a £316 million market capitalisation. Next, the Prospect Epicure J-REIT Value Fund, led by Hawaii University graduate Curtis Freeze, raised £101 million to invest in Japanese Real Estate Investment Trusts, a traditionally lower-risk exposure to the sector. And Speymill Macau Property, probably not the lowest-risk investment, now has $80 (£41) million to invest in what executive chairman Bob MacDonald believes is ‘one of the most compelling property investment cases we see at the current time’.

Moving away from funds to those actually getting their hands dirty, Dublin-based Siteserv, a venture that is seeking to expand its profitable construction site services group to the rest of Ireland and then the UK, coaxed c10.45 million at a price of 55c as it floated simultaneously on AIM and the Irish Enterprise Exchange in mid-November. By means of two acquisitions, Donohue Scaffolding in June and fencing supplier Rent-a-Fence last year, chief executive Brian Harvey has so far made a c39.4 million turnover business. He wants to build an ‘all-encompassing’ site services group organically and has ‘a couple of targets’ for potential acquisitions, particularly focused on the country’s lucrative infrastructure projects. ‘Once we’ve done that we want to replicate the same model in the UK within the next 24 months.’ The Irish construction industry is expected to remain buoyant and the shares have skipped up to 80c, reflecting investor confidence, and could go further.

The arrival of Siteserv and its immediate friendly welcome is unsurprising, considering the achievements of sector peer May Gurney, a June arrival after an oversubscribed placing at 186p. It has built an even bigger following since then, rising 45 per cent to 270p on a number of positive updates, including an 18 per cent upgrade in the size of the secured order book to over £900 million.

Eatonfield’s allure
North Walean brownfield and green homes developer Eatonfield was another to join last month, with £15 million of new cash. Its specialisation on urban regeneration has seen it received with open arms, sending the shares up 9.2 per cent from its 125p issue price. It recently won a huge 24-acre, mixed-use regeneration contracts in Paignton, Devon and founder Rob Lloyd, who sold £5 million worth of his previous 100 per cent stake in the company, says ‘the float will give us funds to expand the company so we can go for other larger deals.’ Furthermore, Eatonfield, like increasing numbers of housebuilders, is tapping into a rich vein of green sentiment by offering a range of eco-friendly extras homebuyers can have added onto their new homes, such as wind turbines, solar panels or rainwater collectors. It looks a good one to watch.