Property fund manager Baring, Houston & Saunders is launching the Baring International Property Fund 1. This new vehicle, a closed-end real estate investment trust, will invest in UK property on behalf of US pension funds. The fund will have a limited life and is seeking between $50m and $100m.
According to Baring, American institutions are intrigued by the UK’s “bond-like” lease structure — the traditional 25-year FRI lease with upward-only reviews is unknown in the US. That, combined with yields of 9% to 11%, make the UK an attractive investment location.
