Hearthstone Investments has launched a residential property fund aiming to invest up to £150m in Scottish affordable and social housing.
The fund has already attracted a £30m commitment from Falkirk Council Pension Fund.
Christopher Down, chief executive at the residential property fund specialist, stated that the firm has spent the last two years pushing its message to financial advisers and is now starting to see the fruits of its labour.
“With the added reassurance that the fund is FCA regulated, advisers can now feel very confident about recommending an investment in the UK’s largest asset class.”
The new vehicle follows on from the Hearthstone UK Residential Property Fund which delivered returns of 13.83 per cent since clean share classes were launched in January 2013. This fund has a minimum investment of £1,000 and is available through Isa, Junior Isa and self-invested personal pension wrappers.
Mr Down added: “Many people invest in buy-to-let properties these days because of the attractive total returns available. Our funds essentially do the same, but take all the hassle of ownership away in a tax efficient and geographically diverse structure.
“Having lots of properties in the fund and buying them outright without any gearing gives the fund a lower risk profile than a typical buy-to-let investment.”
peter.walker@ft.com
