CB Richard Ellis Investors, the global specialist real estate investment management firm, yesterday (May 10, 2011) announced that it had launched its Defined Contribution ('DC') property fund ('CB Richard Ellis UK Property Fund' or the 'Fund').
CB Richard Ellis UK Property Fund has been specifically designed to meet the needs of DC pension investors under FSA supervision and is a non-UCITS retail scheme (NURS) which is daily priced and traded.
The fund will capitalize on the increasing shift in the pensions industry from Defined Benefited ('DB') to DC investment. It is the first time a purely property specialist investment manager has launched a fund for the DC arena, and this has been enthusiastically greeted by the investment consultants and platform providers who serve the DC Pensions industry.
Structured as a Property Authorised Investment Fund ('PAIF'), the Fund is a tax efficient vehicle for UK property investors. It is the first daily traded PAIF to be launched, and it has a dedicated feeder fund for DC investors. In addition, the Fund structure also has the capability to take in portfolios of direct property assets from mature DB pension schemes, looking to exit property in an orderly manner, through the liquidity in the Fund.
The Fund's goal is to build a portfolio of £1 billion, which will be invested to offer exposure to a diversified UK commercial portfolio. The portfolio will consist of assets aimed to ensure a long-term total return in line with the UK property market.
This innovative Fund builds on the experience of CBRE Investors, who have managed a wide range of funds on behalf of DB pension schemes for over 30 years.
Commenting on the announcement, Giles King, Executive Managing Director-UK at CBRE Investors said, "We are delighted that the CB Richard Ellis UK Property Fund, our defined contribution fund, is now live. This is the first fund of its type in the UK to be managed by a specialist property investment manager. We believe that our experience will enable us to capitalize on a growing and developing market, while at the same time providing flexibility for mature DB pension investors to exit their property portfolio in a controlled fashion.
"We have worked closely with platform providers and investment consultants to ensure that the structure we have put in place meets the needs of pension investors looking to include real estate as part of their DC investment portfolio."
Source: Citigate Dewe Rogerson