A new vulture fund wants to raise up to $50 million to buy bargain-basement office blocks. Blacksmith Property Fund’s prospectus was registered this month to issue shares and raise money. The fund may not make payments initially, but when returns do kick in, annual interest of 12 per cent is forecast. Vulture funds – common in the United States and Europe – are designed to take advantage of distressed sellers and pick up bargains in difficult economic times. Three industry experts are behind the fund. Blacksmith directors are Peter Wall, former chief executive of the listed AmTrust Pacific and former Brookfield Multiplex New Zealand managing director, Bryce Barnett, founder and manager of syndicator KCL Property Group, and Jack Porus, managing partner of lawyers Glaister Ennor. Minimum deposits of $25,000 are being sought aiming to raise an initial $25 million, with the ability to accept up to $50 million. Jones Lang LaSalle, property brokers and consultants, have found that nearly a fifth of Auckland’s office stock could be empty in the next three years and already 13 per cent of the CBD floorspace is empty.