Reech CBRE to launch real estate hedge fund

The European investment manager will launch a vehicle investing in pan-European REIT securities

Reech CBRE, the joint venture between Richard Ellis and hedge fund business Reech Aim, is to launch a fund investing in REIT securities within days.

Spire is being managed by Martin Allen, former head of pan-European property equity analysis at Morgan Stanley, who joined the firm last year.

In the first instance, the fund could have an investment capacity of around €200 million, said chairman and chief executive officer, Christophe Reech.

The fund will differ from the firm’s real estate product, the Iceberg Alternative Real Estate Strategy, because it will be limited to investment in listed securities.

The timing is notable given a number of real estate hedge funds have shut since the credit crunch.

Most recently, Portland Capital, chaired by former Apax founder, Sir Ronald Cohen, decided to wind up its long, short global real estate equities business, citing too much volatility as the reason for disappointing performance. The company was launched in 2006.