The closed-end fund will invest in office, retail and industrial. Half of the money in the fund will be invested in an established CIT UK Investment Fund and the other 50% will be invested in mature European (Euro zone) markets.
Of course, the bank says it plans to acquire properties with strong rental earning profiles, opportunities for income enhancement and sustainable capital growth. Investors will receive a quarterly income coupon plus a capital distribution when assets are sold.
The initial subscription period started last month and will continue through October. Units are being issued at a subscription price of $1,000 per unit, with a minimum investment of 101 units.
When fully vested, the bank says the goal is to have the fund distribute an income of 2% per quarter. The total expected IRR, which includes the final distribution from the resale of the assets, is 15%.
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