UBS Asset Management launches open-end U.K. property fund
UBS Asset Management’s (UBS-AM) Real Estate & Private Markets (REPM) business has launched the UBS Long Income U.K. Property Fund (UBS-LIF Property, the Fund), with an initial commitment of £90 million ($118 million). This investment has been used to acquire a seed portfolio of five U.K. hotel assets comprising more than 650 rooms, let to the Compass Group on 15-year lease terms.
The newly launched open-ended real estate fund will offer investors the opportunity to access a portfolio of U.K. long-lease assets benefitting from indexed rental increases, with a focus on alternative sectors.
The fund aims to target assets with a strong underlying site value, embedding capital preservation characteristics into the portfolio.
The initial circa £90 million ($118 million) of equity has been committed by a major U.K. local government pension plan, and REPM is currently in discussions with further investors in the United Kingdom and overseas, with a strong pipelin