CBRE Investors launches prop. fund for UK pension investors

Reuters 03/10/2010 12:40

LONDON, March 10 (Reuters) - CBRE Investors (CBG.N: Quote, Profile, Research) said it has launched a fund targeting mainly UK Defined Contribution (DC) pension investors, aiming to buy 1 billion pounds ($1.5 billion) of British commercial property in the long-term.

The CB Richard Ellis UK Property Fund, approved by the Financial Services Authority on Feb. 25, is the first fund run by a pure property investment manager open to DC pension investors, the company, an affiliate of CBRE, said on Wednesday.

Before this, DC pension investors could only invest in the UK property market through managed funds run by insurance or investment firms such as Standard Life and Legal & General.

The number of DC schemes has steadily grown in the last ten years, replacing Defined Benefit (DB) schemes as employers seek cheaper and less volatile pension vehicles.

"The shift away from DB pension scheme means more pension money is moving towards DC schemes. And there are currently very few property funds out there available for DC investors," CBRE Investors senior director Nick Preston said.

Source

Add your comment Send Print Report