Following approval from the Financial Services Authority, the TM Hearthstone UK Residential Property Fund will be fully rolled out in September giving access to the £4trn residential property market though an authorised fund.
It will be structured as a Property Authorised Investment Fund (PAIF) and is available to retail and institutional investors with a minimum investment of £1,000.
David Gibbins and Lucy Hawkins will manage the fund, track the Acadametrics House Price Index by investing in private rented sector housing across the UK.
Seeding will come from UK house builders and developers (to secure further acquisitions as and when they become available) with Gibbins and Hawkins looking for an initial portfolio of around £30m to 50m. Its target size is £250m within the first 18 to 24 months, aiming for £1bn in five years.
Christopher Down, founder and chief executive of Hearthstone Investments, said: "At over £4trn, residential property is the largest asset class in the UK – bigger than UK equities and commercial property combined.
“Despite this, there have been no authorised funds in the sector, and most investors have been offered little choice other than direct ownership of bricks and mortar.”