Hermes is to invest in US property for the first time, on behalf of the British Telecom Pension Scheme. Hermes REIM has launched a US fund with two partners: local private company Hampshire Real Estate, which will source assets; and UOB Global Capital, a subsidiary of Singapore’s United Overseas Bank, which will market the fund to other international institutional investors and pension funds. Hermes will invest up to $150m while the others will commit $25m each.
The move is one of the first by Chris Taylor, who took over as Hermes Real Estate’s chief executive last year. Taylor has been exiting from a string of UK joint ventures and funds that BTPS had been an investor in over the past decade. The US closed-ended fund will have a core/core-plus strategy, buying “inefficiently priced, well-located, well-leased property typically outside major central business districts, with a focus on the eastern US”.