Arbuthnot launches core fund

The start-up real estate arm of the UK’s Arbuthnot Banking Group has opted for an open-ended vehicle having taken soundings from multi-managers and consultants

Arbuthnot Banking Group, the London listed banking and financial services group, has launched an open- ended core property fund, it said today.

Its start-up property arm, Arbuthnot Real Estate Investment Management, said it had opted for the fund having started with a “black sheet of paper”.

Having spoken with consultants and multi-managers, managing director Richard Tanner said several recurring themes had been uncovered; governance, pricing issues, liquidity, fees and better communication with investors.

In response, the fund has established an independent governance committee to advise on pricing of cash flows into and out of the fund, for example.

London based Arbuthnot operates wealth management and investment banking businesses, but recruited Tanner last year to build the platform. He joined after 15 years with Swiss bank UBS, where he was instrumental in launching a number of UK real estate funds.

Tanner told PERE last year that Arbuthnot would initially focus on areas of the market that were “value based” and targeting “long-term income”, rather than just opportunity funds.