The Montello Real Estate Opportunity Fund will be part of a Luxembourg-domiciled Sicav, and will target a yield of more than 6%, generated through providing bridging and short-term loans and investing in property developments within the UK residential and commercial property market.
“The new Sicav opens up what we are able to do as a business to a broader remit, which includes some excellent opportunities we’ve been missing out on up to now,” said Joseph Samuel, director of funds distribution for Montello.
“We’ve had exceptionally strong interest from investors, advisers, family offices and institutions already, even while the fund is still in development, which has been very encouraging."
According to Montello, in addition to providing short-term lending and bridging finance as with the existing Montello Income Fund, the mandate will also include direct investment in real estate, on a short-term basis.
Minimum investment in the fund will be €125,000. Adviser commissions and management fees have yet to be decided.
“There is a real appetite in the market right now for quality income products, especially one from a provider with a bulletproof track record and recognised industry expertise,” added Samuel.
He said the fund’s assets will be "cherry-picked from the enormous pool of property transactions in London and the South East" which, he noted, has become "a real investment sweet-spot globally" and, in turn, another selling point and source of confidence for Montello.
montello launches luxembourg fund
UK-based real estate bridging finance fund manager Montello is set to launch a Luxembourg fund, in response to what it says is "strong demand" from international advisers and investors.
