Ground rent management firm Dorchester has teamed up with Aviva Investors for a £250m fund.
The pair are initially targetting an investment of £50m, growing to £250m over five years.
Under the arrangement Dorchester will source residential ground rent investments for the Aviva Investors Ground Rent Fund.
Dorchester Ground Rent Management managing director Julius Gottlieb said: “The ground rent sector provides low-risk, secure and long-term cash flows which are ideal for institutional asset liability matching.”
Chris Laxton, fund manager of the Aviva Investors Ground Rent Fund, added: “Residential ground rents are extremely well suited to our return-enhancing and liability-matching (REaLM) strategies, which the ground rent fund forms part of.
“The funds are designed to address the current under-funding issues being experienced by UK pension schemes and ground rents are an excellent match for their portfolios as they generate returns in excess of their liabilities. Dorchester Ground Rent Management has very strong links with the UK’s residential building contractors and brings a strong pipeline of investment opportunities.”
Dorchester Ground Rent Management was established in 2010 with EC Harrisas its backer and major shareholder.
samantha.mcclary@estatesgazette.com
