UBS has launched a fund that offers investors bond-style income secured on commercial property leases.
The Secure Income Property Fund will offer income streams as an alternative to bonds by buying portfolios of ground leases.
The bank is speaking to institutions to attract investment and hopes the value of properties in the fund’s portfolio will increase by between £50m and £100m a year.
Richard Tanner, managing director of real estate, said the fund had a potential life span of 100 years.
The fund is an open-ended Jersey property unit trust available to pension schemes, corporates, charities and certified sophisticated investors.
It will invest in ground leases, where the fund owns the land on which the building lies but not the building itself.
