Aberdeen Property Investors has launched its UK residential limited partnership, with a group of major UK pension fund investors.
Initial investors in the fund comprise two UK pension fund investors, one of them is providing cash for draw down purposes, in order to fund new acquisitions.
The target size of the fund is £150m-200m. API anticipates that by the end of this year, the fund will have assets under management in excess of £100m.
The partnership currently comprises approximately £70m of residential investment properties, located in Central London and the Home Counties. It has an initial ten-year life span. The partnership will be expanded through the introduction of new investors, either providing cash for new investment, or alternatively, injecting residential assets into the fund in return for units, subject to the properties complying with the partnership policy.
API director of new products Charles Weeks said: “The Regent Residential Partnership has been successful in attracting third party institutional investors into the fund as a result of its clearly defined investment strategy, focusing on the corporate lettings market in Central London and the Home Counties. In addition, the above average running yield on the combined portfolios is particularly attractive to UK pension fund investors. API has now been investing in the residential sector since April 1998 and has recently recruited John German from Cluttons, as the asset manager of the fund, we now have the necessary expertise in-house.”
By Siddika Khalique
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