Former Close property team launches Stellar AM

Four ex-Close property specialists have united to launch Stellar Asset Management and will unveil an Emerging Europe real estate fund in the coming weeks.

The new company was founded by former Close Brothers investment director, Jonathan Gain, who is now chief executive. He felt Close was losing its entrepreneurial spirit as it grew in size and it was harder to launch new products quickly to meet changing client needs.

Members of the Close team have now been reunited at Stellar AM including Craig Reader, the founder of Close Brothers Investment as chairman, Stephen McKeever as property director and Gordon Pugh as sales and marketing director.

The team will work in the same way as it did at Close by entering into joint partnerships with specialists to launch new funds and products.

Stellar’s first fund, to be launched in the coming weeks, will offer investors an opportunity to participate in the Emerging European real estate market.

The team had been looking at this area while at Close and already has relationships with specialists in this region.

The direct property fund will be well diversified and will aim to providing asset growth over the short to medium term. It is expected to deliver returns to investors in excess of 15% per annum.

Gain says the fund will aim to invest in properties which will be of interest to locals in Eastern Europe rather than foreign investors.

Commenting on the property market generally, Gain says: "There is demand for the right product with the right returns from the right parties.

"Investment opportunities outside of the UK will be more interesting for retail investors as they will deliver greater returns. There are some opportunities in the UK but in niche areas."