London-based property financing firm Montello has unveiled a fund that will invest in bridging loans and real estate development.
The Montello Real Estate Opportunity fund has set an initial target of investing up to £250 million and is structured as a Luxembourg Sicav offering monthly trading. It aims for a net annual return of 6-10%, after a management fee of 1.95%.
Montello has partnered CBRE for the fund, with the property giant to act as its transaction manager. The fund will invest in bridging finance, as well as providing development finance and being able to enter joint ventures.
‘Being able to have CBRE involved is a real coup, and we look forward to working with them to build a very strong presence in this market,’ commented Montello managing partner Christian Faes.
Faes added that the fund would make Montello a ‘one-stop shop for real estate entrepreneurs’. He explained: ‘We will now be able to fund developers from the acquisition of a property through bridging finance, through to the development and completion of a project.’
The minimum initial investment is £10,000.