Hermes turns attention to US with $200m fund

The UK asset manager has launched a closed ended vehicle with a Singapore bank and a private US firm. Hermes is putting in up to $150m on behalf of client, British Telecom Pension Scheme, while its two partners are contributing $25m each.

Hermes Real Estate Investment Management, one of the largest real estate managers in the UK with over £5.8 billion (€6.9 billion; $9.3 billion) of assets under management, has set up a US closed ended fund.

The company said today it was putting up to $150 million into the HUH US Real Estate Income Fund, while UOB Global Capital, a subsidiary of Singapore’s United Overseas Bank, and private US firm, Hampshire Real Estate Companies, were each putting in $25 million. 

Hampshire will be the local operating partner while UOBGC will provide the origination and distribution platform.

HUH US Real Estate Income Fund’s strategy is to focus on investing in “inefficiently priced”, well-located and well-leased properties typically outside of the major city central business districts in the United States, with primary focus on eastern part of the US.

Chris Taylor, chief executive of Hermes Real Estate Investment Management, said the agreement was the culmination of a detailed review process.

Jon Hanson, chairman, Hampshire Real Estate Companies, said the firm was excited about a partnership with Hermes and UOB to tap into a network of off-shore investors seeking alternative investment asset classes and investment in US real estate.