Kames Capital plans to tap into property market with Paif

real-estateKames Capital plans to launch a property authorised investment fund (Paif) in the first quarter of next year.

Paifs are open-ended investment funds that invest in real estate, in shares of UK real estate investment trusts (Reits) and in shares of certain foreign entities equivalent to Reits.

They are exempt from corporation tax on a pool of income and gains arising from investments.

David Wise and Alex Walker will manage the fund, which has no name yet, only a working title of Kames Paif.

Kames Capital says the duo will be investing primarily in direct property, about 80%, but also in indirect property and equities including property companies, Reits and specialist property funds, as well as cash.

Kames Capital says Wise and Walker will look to utilise the property team’s active value expertise focussing on properties that offer asset management opportunities priced at between £2 million (€2.4 million) and £10 million.

“These types of properties are often too big for most private buyers and too small for many institutional investors,” the asset manager says in a statement. “In addition to active value style properties, a core property allocation will be maintained for liquidity purposes.”

Based in London and Edinburgh, Kames Capital manages £53 billion.

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