P-Solve backs new UK property income fund

Investment consultant and fiduciary manager P-Solve has helped create a new UK commercial property fund, which will target sectors outside London and the South East of the UK.

The fund, the Tritax Property Income Fund, aims to generate an attractive and secure yield from overlooked commercial property sectors, such as regional offices, light industrial and distribution. The fund has been seeded with £115 million of pension scheme funds and uses the property expertise of Tritax Management. P-Solve head of multi-asset, Tamsin Evans, commented: “We came to the conclusion that an opportunity exists for attractive, risk-adjusted returns in select regions and sectors of the UK commercial property market. Having found that there was no suitable investment product available in the market, we negotiated a pooled investment vehicle with Tritax that we believe offers attractive expense and liquidity terms.”

The fund will use leverage of up to 25% on a loan-to-value ratio and it aims to deliver 70-80% of its total return through a target distribution of 5.5% a year. Tritax partner, Henry Franklin, said: “The Tritax Property Income Fund seeks to provide a stable, property-backed return with low leverage; the strategy is very familiar to Tritax and complements our existing investment offerings.”