First Property said in a statement that the partnership, which is close-ended and will run until May 2018, includes a commitment by investment clients of £12 million which is intended to increase to £40m within three months. It said that the group itself has agreed to commit 5% of the total equity raised subject to a limit of £2m.
The partnership will be managed by First Property, which will receive 20% of the profits earned.
"Central Government support for the creation of new housing and its support of the housing market generally mean that the environment for residential development is better now than it has been for many years," said First Property Group chief executive Ben Habib. "There is a housing shortage in the UK and our plan to convert redundant offices into housing makes a great deal of sense."
"I am delighted by the establishment of this new partnership which broadens the Group's institutional sources of capital and for which we have high hopes," he added.
