Deutsche Bank investment manager RREEF has launched the third in its range of UK Property Venture Funds.
The Jersey property unit trust will look to raise £300m of investment capital, which, through a maximum gearing of 2.33 times capital, could raise nearly £1bn for investment. It already has a £20m seed investment from Deutshe Bank.
RREEF UK head of investment management James Petit said: “We are already looking at a number of properties. The fund will not be sector-specific but will be about individual opportunities.”
The fund is targeting a net return of 30% above the IPD all-property index. It plans to draw equity from existing investors in RREEF’s second venture fund, the US investment market and individuals, with a minimum £100,000 investment.
It will operate on a 1% annual fee plus a performance bonus.
