Property advisory firm CB Richard Ellis and fund manager Reech AiM said their [property fund joint venture is planning to launch up to six real estate hedge fund strategies, to meet burgeoning demand for property investments.
Property advisory firm CB Richard Ellis and fund manager Reech AiM said their [property fund joint venture is planning to launch up to six real estate hedge fund strategies, to meet burgeoning demand for property investments.
The joint venture’s first fund, the Iceberg Alternative Real Estate fund, launched on 1 May of this year, invests in a range of financial instruments with exposure to real estate assets, including listed securities, unlisted real estate vehicles and property derivatives. The fund targets a return of LIBOR + 15% and is aiming to raise £400 mln (EUR 588 mln).
Reech AiM founder Christophe Reech said the response to the derivatives application of real estate has been extremely positive and they expect the market to grow exponentially. 'We believe that real estate hedge funds are going to provide new risk and return dimensions to traditional "long only" physical property exposure. Our range of funds will provide a range of sectorial, geographical or risk budgeting allocation options for either real estate or alternative investors', he said.
Martin Samworth of CB Richard Ellis added: 'Our joint venture with Reech AiM and the launch of the Iceberg Fund are examples of the growing financial sophistication of the real estate markets and the opportunity that this represents for our business.'
