Pramerica Real Estate Investors, the European property arm of Prudential Financial, is to launch an open-ended fund for institutional investors keen to harness high income returns available in UK commercial property.
The Pramerica UK Real Income Fund will invest in a portfolio of assets with low levels of depreciation and volatility to companies with low credit risk on long leases with fixed or inflation-linked rents.
The fund will target assets with potential to track and exceed the UK Retail Price Index by between 4 and 5 per cent, after fees and costs, Pramerica said, adding that it could grow to £500 million (S$1.15 billion) over the next five years.
The fund will be managed by Pramerica’s newly established UK real estate team, comprising Paul Dennis Jones, Charles Crowe and Andrew Grigson, who departed en masse from UBS Global Asset Management earlier this year.
Source : Business Times – 22 Sep 2009
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