Long Harbour has unveiled a €400m (£340m) fund to invest in residential and commercial ground leases across Europe.
The investment manager has an initial €30m to deploy, with a further €370m committed, with funds coming from a single investor.
Long Harbour’s first European Fund will target ground leases across all assets in European markets including Germany and Ireland, after success in the UK.
By selling the ground lease, Long Harbour said landlords and asset managers will be able to finance their commercial buildings while investors can access a reliable long-term investment in a low-risk asset class.
Long Harbour currently has £1.7bn in ground rent assets under management in the UK.
The Long Harbour Euro Secured Income 1 Fund will be managed by London-based executive director Richard Silva.
Silva said: “We will provide residential landowners with a new source of finance by investing in their ground leases, unlocking the value of their land. This approach will allow landlords to concentrate on their buildings and occupiers.”
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