Hearthstone Investment Management has raised £97m (€106m) for the first close of its second UK residential fund, drawing commitments from three UK local government pension scheme funds.
Lincolnshire Pension Fund, South Yorkshire Pensions Authority and Tyne & Wear Pension Fund all committed to Hearthstone Residential Fund 2 (HRF2), a 10-year closed-ended fund seeking to raise £300m to invest in the UK private rented sector.
Jo Ray, head of pensions at Lincolnshire Pension Fund, said: “We were keen to invest in the residential sector, and in particular into a strategy involving houses and small block of flats. We were greatly impressed with Hearthstone’s track record and approach.”
Hearthstone raised £200m for its first residential fund, which is now fully committed with almost 1,000 residential units throughout the UK. Seven UK local authority pension funds, including Tyne & Wear, are investors in HRF1.
Richard Otten, head of asset management at Hearthstone, said: “We are delighted that institutional investors continue to have confidence in the residential sector and in our ability to source and secure high-quality residential assets.
“We have built up a strong track record of partnering with leading housebuilders to deliver the types of homes people want, at rents they can afford, and in the places they need them.”
To read the digital edition of the latest IPE Real Assets magazine click here.
No comments yet