New Star’s new international property fund will be the only UK onshore investment fund to include Asia and the Pacific Rim in its remit. With the significant exception of the United States, the fund’s investments will be worldwide*; it is being marketed as Eurasian. An added attraction is that the fund’s holdings will be directly in real estate rather than in property companies.
The New Star website lists five properties that it says are indicative of the kinds of property it will be bidding for. Three of these are European (in Amsterdam, Berlin and Munich), one is Japanese and the fifth is in Sydney. The fund brochure also lists properties in Hong Kong, Singapore and Melbourne in this context. The fund’s remit is exclusively commercial property. The fund won’t actually be able to invest in any of these properties until it’s launch phase target of £200m has been reached but with the base rate at 5.5% this could be said to be a good time for launch phases. The retail offer period closes on 4th June. Eventually, the fund aims to be 80% invested in particular properties. The balance will be held in (property) shares or REITs.