The British Telecom Pension Scheme (BTPS) is making its first foray into US real estate by committing about EUR 100 mln to a new fund for institutional players. The HUH US Real Estate Income Fund (HUH) is a joint venture between Hermes Real Estate, the EUR 40 bn pension fund's investment manager, a subsidiary of United Overseas Bank of Singapore, and US-based real estate company Hampshire.
The British Telecom Pension Scheme (BTPS) is making its first foray into US real estate by committing about EUR 100 mln to a new fund for institutional players. The HUH US Real Estate Income Fund (HUH) is a joint venture between Hermes Real Estate, the EUR 40 bn pension fund's investment manager, a subsidiary of United Overseas Bank of Singapore, and US-based real estate company Hampshire.
London-based Hermes Real Estate said HUH is a closed-end commercial real estate income fund available to international institutional investors and pension funds. The fund's will invest in 'inefficiently priced', well-located and well-leased properties typically located outside of the major city central business districts, with primary focus on the Eastern US.
Hermes Real Estate, on behalf of BTPS, is providing $150 mln (EUR 106 mln) of equity, with UOB and Hampshire each committing $25 mln. The target size of the fund is $400 mln with a combination of equity and leverage.
Chris Taylor, CEO of Hermes Real Estate, said the partnership platform was the best manner to implement the investment manager's desired diversification into US real estate investments on behalf of all its institutional investors.
Hermes has EUR 6.6 bn of assets under management, while Hampshire has $1 bn of equity in $2.5 bn worth of assets under management.
