CB Richard Ellis Investors has launched a UK direct property fund for Defined Contribution (DC) pension investors. The fund will, for the first time, allow DC pension investors to access a fund run by a purely property specialist investment manager.

The fund launch is a significant development for CBRE Investors as it marks the firm's entry into a new and rapidly developing market within the UK pensions sector. CBRE Investors has managed funds on behalf of Defined Benefit (DB) pension schemes for over 30 years.

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. The CB Richard Ellis UK Property Fund will offer investors exposure to a diversified UK commercial portfolio and uses the CBRE Investors approach of focusing on a higher-than-average yielding portfolio. The fund's goal is to build a portfolio of £1 bn (EUR 1.09 bn).

The structure of the fund is a Property Authorised Investment Fund (PAIF), the recently approved new tax structure for UK property investments.