Tritax has widened its funds range with the launch of the Tritax Property Income Fund.
The fund was launched with £115m of seed capital from P-Solve, part of the River and Mercantile Group, with a target of £500m in the medium term.
The open-ended fund is listed in Jersey as a unit trust. It will complement the Tritax Big Box REIT and will focus on regular and stable income streams as well as longer term capital growth.
The objective will be reached through a core-plus strategy across commercial property sectors. The assets will be across the UK but outside of London.
The fund will have up to 25% leverage and will aim to deliver 70-80% of its total returns through a 5.5% per annum distribution.
Tamsin Evans, head of multi-asset at P-Solve, said: “This fund is the result of a classic coming together of demand and supply. We came to the conclusion that an opportunity exists for attractive, risk-adjusted returns in select regions and sectors of the UK commercial property market. Having found that there was no suitable investment product available in the market, we negotiated a pooled investment vehicle with Tritax that we believe offers attractive expense and liquidity terms.”
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