Two of Prudential's fund management arms have launched a fixed-income property fund which Property Week has hailed as the first of its kind for institutional investors. The fund will buy property with fixed or inflation-linked rental uplifts, and aims to deliver a secured long-term income stream through a well-diversified portfolio of properties and tenant credit.
Two of Prudential's fund management arms have launched a fixed-income property fund which Property Week has hailed as the first of its kind for institutional investors. The fund will buy property with fixed or inflation-linked rental uplifts, and aims to deliver a secured long-term income stream through a well-diversified portfolio of properties and tenant credit.
The fund was launched by Prudential's property division Prupim and Prudential M&G, which specialises in the corporate bond market. 'In five years' time I would be surprised if the fund wasn't in the billions rather than the hundreds of millions,' said Prupim managing director Martin Moore. Pointing to increasing demand from pensions for investments that can deliver stable and long-term returns, Moore said the potential was 'huge'. 'There is no ceiling on size.'
The Prudential fund will be seeded with three assets with a combined value of more than £ 200 mln. The first is a stake in 250 Bishopsgate, the ABN Amro office headquarters in the City of London that Prupim bought two weeks ago from Evans Randall. Prudential is a UK-based financial services group.
