Hansteen, the FTSE 250-listed investor in continental European and UK real estate, has launched the Hansteen UK Industrial Property Unit Trust II (HPUTII).
The fund, which will be focused on high-income generation as well as growth in net assets, is targeting annual returns, after fees and expenses, of 12-15%.
Hansteen said that the fund would be its vehicle for investing in UK industrial property with a value of £15m or less, or portfolios under £30m, for the earlier of either the fund becoming fully invested or in 18 months time.
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The group said that net income would be distributed quarterly, the life of the fund would be six years and it would be geared to a maximum of 45% as equity was deployed.
Hansteen reported that the fund had been seeded with approximately £49m of property and would have the capacity to invest up to approximately £200m in UK industrial property.
The group added that the fund had been launched with £107m of equity; one third provided by Hansteen and two thirds from clients of Aviva Investors Real Estate Multi-Managers (REMM).
Ian Watson, Joint Chief Executive of Hansteen said: "We are delighted to have entered into this venture with Aviva Investors, with whom we already enjoy a successful relationship as a co-investor in the first fund. The quantum of their investment is testament to their confidence in us as a partner who can deliver performance."
Alistair Dryer, Senior Fund Manager at Aviva Investors (REMM) said: "This is a very exciting opportunity to invest alongside our partners Hansteen at what we believe is an opportune point in the investment cycle for our clients."
MF
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