The Fund has been designed specifically for institutional investors seeking a strategic allocation to high quality private rented residential assets in the UK. It seeks to invest at scale in selected areas where strong rental demand is expected to provide the basis for a reliable, stable income stream offering good inflation protection. Our strategy also seeks to identify under-supplied markets where healthy consumer demand is expected to support capital growth over the long term.
The Fund is the sole focus of Hearthstone Investment Management Limited, a 50:50 joint venture between the Fund’s senior management team
and Hearthstone Investments plc.
is to provide a strong and stable income return (a net distributable income before fees of at least 4.5% on stabilisation), supplemented by capital growth.
is core: the Fund is unleveraged and will not take development risk. Investments will be made for the long term to limit turnover costs. Nevertheless, it will seek to exploit opportunities to add value through active asset management and through strategic rebalancing.
is targeted at £300 million. The Fund will be open for capital raising for a limited period of 12 months from first close.
will be achieved through a combination of the Fund’s scale and a strategy to ensure exposure across a spread of unit sizes, geographies, tenancy lengths and tenant employment profiles.
is to acquire and actively manage good quality, market rented residential stock in areas of strong rental demand across the UK, including a mix of apartment blocks and clusters of houses. Acquisitions will include bulk purchases of newly-built stock from housebuilders, and standing investment assets.
will focus on efficient-to-manage, readily lettable flats and houses, typically ranging from one to four bedrooms, particularly suitable for young professionals and families, and with attractive local amenities.
is an English Limited Partnership, a widely used and tax transparent structure. The Fund is closed-ended, with a life of 10 years.
will be determined through formal consultation with investors. Options include planned full or partial liquidation, extension options or the creation of a new follow-on vehicle for investors wishing to maintain exposure to the sector.
is distributed to investors, after deduction of operating costs and expenses.
is provided by NCM Fund Services, as FCA regulated Fund Manager.
is based on industry best practice principles. An independent Investment Committee is mandated to review and approve the Fund’s Investment Plan and all transactions. An investor-led Advisory Committee reviews operational matters, and acts as a formal communication forum with the Fund’s management team.
For further information contact Cristoforo Rocco
tel: +44 (0) 20 3301 1335