BH&S to launch high-yield property income fund
UK – Property asset manager Baring Houston & Saunders (BH&S) hopes to raise £250m (e396m ) to £300m for its new high-yield property income fund.
The ING UK Property Income Limited Partnership will launch in the fourth quarter of this year and will offer pension funds a net initial yield of over 9.25% year, BH&S says.
The income driven fund will have a seven-year lifespan and is based on an existing £145.5m institutional quality, commercial property portfolio.
Peter Macpherson, director business development at BH&S, says the case for investing in property is compelling. “This low risk income product should appear to pension funds which have a core satellite strategy, but need to diversity from bonds and equities into alternative investments with a total return structure.”
BH&S has over £1.7bn (e2.7bn) of funds under management and is a member of ING Real Estate.