ING subsidiary Baring Houston & Saunders has launched the UKâ€™s largest residential investment fund. Aimed at both domestic and overseas investors, the fund will have an initial size of Â£100 million ($155 million) and a target size of Â£250 million ($390 million).
With UK residential property currently delivering strong capital growth, the projected Internal Rate of Return is 9% to 10%. And despite fears that the residential property bubble is about to burst, BH&S is confident that the residential sector remains a good long term investment. With a growing population and the lowest rates of development since 1924, demand for housing across the UK consistently outstrips supply.
The fund will take the form of a Guernsey-registered Limited Partnership with an eight-year term and a two-year wind down period.