18 March 2016
Tritax is broadening its property fund range with the successful launch of the Tritax Property Income Fund (TPIF), to complement the well-established Tritax Big Box REIT.
Structured as an open ended Jersey Unit Trust, Tritax launches TPIF following extensive negotiations with P-Solve, part of River and Mercantile Group, and having secured £115m of seed capital managed by/advised on by P-Solve. Tritax has an ambition to grow the Fund to over £500m in the medium term.
The objective of TPIF is to provide investors with regular and stable income distributions, as well as longer term capital growth.
TPIF is set to draw on Tritax’s extensive relationships within the UK commercial property market, which allows it to source selective opportunities on an off-market basis, maximising value and ensuring deliverability.
The investment strategy of the Fund will concentrate on an income focused core plus approach, acquiring and managing a diversified, high quality portfolio of assets across the UK, outside Central London, in targeted commercial property sectors.
With a moderate leverage of up to 25% LTV the Fund aims to deliver 70-80% of its total return through a target distribution of 5.5% pa.
Henry Franklin, Partner of Tritax, commented:
“We are delighted to launch TPIF with P-Solve as a significant seed investor and look forward to developing new relationships with other institutions as the fund grows. TPIF builds on our income led investment track record and seeks to provide a stable, propertybacked return with low leverage; the strategy is very familiar to Tritax and complements our existing investment offerings.
This new opportunity has allowed us to expand our investment team with the recent recruitment of a new team member with open-ended fund experience, Tim Legge, who will work with the team to deliver the TPIF strategy.”
Tamsin Evans, head of multi-asset at P-Solve, said:
“This fund is the result of a classic coming together of demand and supply. 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.”
FOR FURTHER INFORMATION, PLEASE CONTACT:
Tritax Marketing Department
Call: 0207 290 1616
The Tritax Group
The Tritax Group started in 1995 where it focused on originating, syndicating and managing commercial property investments for private equity capital. The Tritax Group started by offering property investments structured to make use of available tax reliefs (such as Enterprise Zones) so as to enhance investors’ returns.
The Group has acquired and developed commercial property assets with an acquisition value of over £3.3 billion on behalf of property unit trusts, limited partnerships and syndicates, involving more than 121 separate investment vehicles and including Big Box assets, industrial properties, office, retail and hotels.
As at 26 January 2016, the Tritax Group had total assets under management with an acquisition value of approximately £1.72 billion, across more than 14 investment vehicles (including the Tritax Big Box REIT plc), consisting of over 16 million sq. ft. of real estate assets.
Since 2000, the Tritax Group has delivered an average exit IRR across its non-tax products of approximately 16% pa, with a number of its tax products achieving performance in excess of this average. Its recent tenant list includes Amazon, Next Group plc, Intercontinental Hotels Group, Sainsbury’s, RBS, Royal Mail, Tesco, IBM, HMRC, Halfords, GDF Suez, Accor, and Asda. As at 26 January 2016, it had a rent roll collection of more than £81 million from its assets. Further information on Tritax is available at www.tritax.co.uk
Tim Legge, Fund Manager
Tim Legge read reading Politics and Economics at University prior to beginning his career with Hillier Parker (now CBRE) in Scotland, in the Investment and Business Space teams. After qualifying Tim moved to London to join Gartmore Property Asset Management (now Lothbury Investment Management), as part of the asset management and development team before taking over responsibility for the marketing and investor relations for Lothbury Property Trust in 2000. Tim joined RREEF (now Deutsche Asset & Wealth Management) in 2007 as a real estate product specialist for UK and European clients, responsible for capital raising and client relationship management. Tim joined Tritax in 2015.