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.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
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
-
SIPP holders to get cash warnings and be offered default fundsNews Providers will be required to offer investors a default fund and must warn customers of the inflationary risk of cash savings the regulator has said. What the new rules mean for your retirement pot?
-
Zoopla: Asking price discounts hit a five-year high – is now the time to buy a property?
News Zoopla’s October House Price Index shows sellers are accepting discounts of 5.5% on average to secure a sale – we reveal where homeowners are taking the biggest asking price cuts
