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Clavis Walden brings unique property fund to UK
Clavis Walden, a commercial real estate fund manager, has launched the Piccadilly UK Commercial Property Income fund.
The company said the fund would be the first Paif - or property authorised investment fund - to be registered in the country.
According to Clavis Walden, the fund, a Nurs Oeic, will be the first open-ended property vehicle to pay gross dividends from property rental income without deducting corporation tax.
It will invest in direct UK commercial properties and target a net distribution of 7 per cent a year and the optimum fund size is £400m.
About 10 per cent of the portfolio will consist of Reits, property company shares and other liquid assets.
Clavis Walden said it was targeting institutional, professional and discretionary investors, including multi-managers, wealth managers, private client managers, pension funds and charities.
Iain Keys, managing director of Clavis Walden, said the fund would meet demand from clients looking for tax-efficient income in an onshore framework.
He said: "Other investor benefits of a regulated vehicle are transparency, strong corporate governance and modest running costs.
"The property fund management industry is changing, and Paifs will become the structure of choice for many managers."
