CB Richard Ellis Investors, the real estate investment management firm, has launched a UK direct property fund for defined contribution pension investors.

The CB Richard Ellis UK Property Fund received Financial Services Authority approval on 25 February, and will for the first time allow DC pension investors access to a fund run by a purely property specialist investment manager.

The structure of the fund is a property authorised investment fund, the recently approved new tax structure for UK property investments.

The rapid growth of DC pension schemes over the last few years has illustrated the need for property specialist expertise to be available to the rapidly growing number of DC pension investors in the UK. 

CBRE Investors has been working closely with platform providers and investment consultants in setting up this fund to offer a wider range of choice in the DC arena.

The fund’s goal is to build a portfolio of GBP1bn.

Nick Preston, senior director at CBRE Investors, says: “We are delighted to announce CBRE Investors’ move into the defined contribution arena and believe that our experience will allow us to capitalise on a growing and developing market. We have worked closely with our team of advisors to develop this pioneering fund structure involving a PAIF with an authorised feeder fund. We believe that our fund is the first product of its kind available in the UK market and look forward to developing this side of our business.”