UK - Insight Investment - the fund management arm of banking giant HBOS - is launching a listed commercial property fund aimed at institutional investors.
The fund manager expects its Insight Foundation Property Trust to be worth £293m when it is launched this month, with a target of £400m gross asset value when fully invested.
Insight is looking to raise around £250m in equity.
The Guernsey-based fund’s underlying portfolio of commercial office, retail and industrial properties will be managed by Insight’s 43-strong property team, which currently manages £4.6bn of assets.
Insight managing director, property, Duncan Owen said: “We are responding to an emerging trend in the UK market and believe there will be a real appetite for investment in this company, particularly as the £220bn UK commercial property market continues to produce consistent growth.
“What differentiates this fund offering is that it should be larger, more diverse and offer a higher income yield than many other investment opportunities available to both retail and institutional investors. We believe this new opportunity will appeal to investors seeking high income yield from a lower-risk fund as part of a well-diversified portfolio.“
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