31 Jul 2012, 3:01 pm
The TM Hearthstone UK Residential Property Fund, which is operated by Hearthstone Investments, is the first residential property fund authorised by the Financial Services Authority (FSA). This makes it eligible for investments via tax efficient wrappers such as ISAs and SIPPs.
Barratt's investment will be spread over three stages and will be linked to the growth of the fund.
Hearthstone chief executive Christopher Down said that it was "thrilled to secure the early support of Barratt for the Hearthstone fund" and noted that "Barratt’s showhome portfolio will provide the fund with immediate scale and income, giving investors and their advisers the ability to invest with confidence".
"Our strategy is to secure best value whilst unlocking cash from our balance sheet and driving down debt; selling some of our showhomes and licensing them back achieves just that," said Mark Clare, chief executive of Barratt Developments. "At the same time, this new fund is an important strategic development in our marketplace - the creation of a professional private rental fund operating at scale, which is something that the UK really needs."
