Fairfax founder Allesch-Taylor launches fund to tap property

DTZ Investment Management has teamed up with Clearbrook Capital to launch an inflation-linked UK commercial property portfolio. 

Index Linked Properties Limited (ILP), a joint venture between DTZ Investment Management and Clearbrook Capital, will invest in UK commercial property. It aims to protect investors against inflation by targeting inflation-linked leases or those with guaranteed uplift rent review mechanisms.

The minimum lease length in the portfolio is likely to be 15 years and the portfolio will probably have a 55% exposure to retail, 18% to offices and a 27% allocation towards logistics.

The Jersey-domiciled company, which is to list on the London Stock Exchange, will be managed by Chris Cooper of DTZ Investment Management alongside Clearbrook’s Stefan Allesch-Taylor. As well as being a partner at Clearbrook, Allesch-Taylor is also chief executive of Fairfax and was famously responsible for ousting former chancellor Ken Clarke from his position as chairman of Savoy Investment Management.

They aim to deliver a 5.5% yield without using gearing.

Citywire understands DTZ and Clearbrook propose to raise £1 billion with the trust, which is likely to launch in October, and have been targeting private client managers and institutional investors from the UK and abroad.