Barclays Capital, the investment arm of UK bank Barclays, is to launch a European real estate income fund. The Dublin-domiciled OEIC fund will offer investors exposure to tax-friendly real estate investment trusts (REITs) in Europe and the EPEU index, which tracks 47 European REITs and real estate shares.
Barclays Capital, the investment arm of UK bank Barclays, is to launch a European real estate income fund. The Dublin-domiciled OEIC fund will offer investors exposure to tax-friendly real estate investment trusts (REITs) in Europe and the EPEU index, which tracks 47 European REITs and real estate shares.
The fund is targeting a yield of 7% by investing in large-cap REITs with 10-15% capital growth potential. Most of the investments will be in Dutch and German funds, but with the underlying properties distributed across Europe.
'There is an expectation that over time as Europe becomes more developed, the number and size of REITs will generate greater investor interest. The majority of European property funds on the market are UK-based, but we have deliberately diversified, as we believe investors are seeking opportunities away from the UK property market,' said Barclays Capital director Alex Robinson.
