CB Richard Ellis Investors (CBRE Investors) has launched a Defined Contribution (DC) property fund which aims to build up a EUR 1.1 bn diversified commercial portfolio in the UK.

The CB Richard Ellis UK Property Fund aims to capitalise on the increasing shift in the pensions industry from Defined Benefited (DB) to DC investment. Structured as a Property Authorised Investment Fund (PAIF), the fund is a tax-efficient vehicle for UK property investors and has been specifically designed to meet the needs of DC pension investors under FSA supervision.

The fund will take the form of a non-UCITS retail scheme (NURS) which is daily priced and traded. CBRE Investors claims the fund will be the first daily traded PAIF to be launched, with a dedicated feeder fund for DC investors.

In addition, the fund structure also has the capability to take in portfolios of direct property assets from mature DB pension schemes, looking to exit property in an orderly manner, through the liquidity in the fund.