New style of fund launched in UK

Boutique investment firm Clavis Walden has launched a Property Authorised Investment Fund (PAIF) into the UK, which share similar tax advantages with REITs.

The first of an expected wave of Property Authorised Investment Funds (PAIFs) in the UK has been authorised.

Boutique London-investment firm Clavis Walden launched the Piccadilly UK Commercial Property Income fund saying it was the first UK open ended authorised on-shore property fund under the new regime which allows the payment of gross dividends from property rental income without corporation tax being deducted – just like a REIT.

It has received clearance from UK regulator, the Financial Services Authority as well as from the Treasury.

It hopes to raise £400 million (€228 million; $320 million).

PERE recently met with another London-based boutique investment house that has also laid the foundations for a PAIF. Experts say more are on the way as fund managers hope to combine the tax efficient structure with opportunities to buy assets at attractive prices.

The Piccadilly UK Commercial Property Income fund is hoping to attract capital from UK and overseas institutional, professional and discretionary investors, including multi-managers and pension funds.

Clavis Walden is an independent fund management firm that concentrates on real estate.