Hearthstone Investment Management has completed the first close of its inaugural private rented sector fund with more than £100m of investment.
The Hearthstone Residential Fund 1 has five local authority pension funds acting as cornerstone investors in a 10-year closed-end vehicle.
It says it will invest across the UK regions in search of rental demand.
The investors include the Derbyshire Pension Fund, Nottinghamshire Local Government Pension Fund, Staffordshire Pension Fund, Teesside Pension Fund and West Midlands Pension Fund.
The fund will aim to deliver an annual net yield of 4%, supplemented by capital growth, and is targeting a final close of £200m in November 2018.
It will be advised by Hearthstone Investment Management, a 50:50 joint venture between the senior management team and Hearthstone Investments.
The management team, which is investing alongside the local authority pension funds, consists of Richard Otten as director of asset management, Andrew Smith as chief investment officer and Cristoforo Rocco di Torrepadula as director investor relations.
To send feedback, e-mail alex.peace@egi.co.uk or tweet @egalexpeace or @estatesgazette
