Hermes, Singapore's UOB to jointly set up $487m property fund

United Overseas Bank (UOB) (UOBH.SI), Singapore’s third largest lender, said it has teamed up with UK asset management company Hermes to set up a US$400 million ($487 million) U.S. property fund.

UOB said a joint venture between the Singapore lender and HGF Investor Fund will team up with Hermes Real Estate Investment Management to set up the fund which will make long-term investments in commercial real-estate in the United States.

HGF Investor Fund is a unit of U.S.-based Hampshire Real Estate Companies, which has more than US$1 billion worth of equity under management and assets valued at over US$2.5 billion,according to a UOB filing to Singapore Exchange.

 

Hermes has more than 5.8 billion pounds ($11.4 billion) in assets under

management, the filing said.

 

“Hermes Real Estate Investment Management Limited, on behalf of the British Telecom Pension Scheme, will provide up to US$150 million capital with UOB and Hampshire Real Estate Companies each committing US$25 million,” a UOB spokeswoman said in an email to Reuters.

 

“The fund is targeting to raise US$400 million including the sponsors’ commitments,” she said adding that the fund plans to invest in commercial properties outside the central business district of U.S. cities primarily in eastern United States.