London-based real estate financier Montello has launched a third fund which will initially seek to invest £250 mln (€300 mln) in loans to UK real estate.
London-based real estate financier Montello has launched a third fund which will initially seek to invest £250 mln (€300 mln) in loans to UK real estate.
The Montello Real Estate Opportunity Fund will have a broad investment mandate, building upon Montello's track record as a short-term real estate lender in the UK market. In addition to bridging finance, the fund will be able to provide development finance and enter into joint ventures.
Montello has so far received seed funding from three offshore institutional investors. The fund is open-ended and trades monthly, and will provide investors with a net return of between 6-10% per annum, payable on a quarterly basis.
CBRE Real Estate Finance has been appointed as transaction manager for the fund. Luxembourg Fund Partners and Apex Fund Services are assisting with the operation and administration of the fund, which is audited by PwC with ABN Amro Bank acting as the custodian bank.
The fund was launched in Luxembourg as a SICAV SIF and formally approved by the Luxembourg regulator at end-December 2013.
