UK Government Moves Ahead with Legislation for Reserved Investor Fund (RIF) in Real Estate Sector

The UK government has announced plans to introduce a new investment structure known as the Reserved Investor Fund (RIF), which aims to provide UK-based real estate fund managers with an alternative to offshore vehicles. The move comes as part of the Spring 2024 Finance Bill and follows the Treasury’s recent consultation responses.

Melville Rodrigues, head of real assets at Apex Group, spearheaded the RIF concept and expressed confidence that it would be widely adopted by fund managers of all sizes in the UK. Independent consultant John Forbes praised the RIF for offering similar benefits to offshore unit trusts but within a UK-based framework.

The introduction of the RIF is expected to level the playing field for fund managers of varying sizes and attract more capital for investments in town center regeneration and net-zero initiatives. Stephen Palmer of DTZ Investors commended Rodrigues for his dedication to the initiative over the past five years.

The new fund structure is set to reduce costs for small and medium-sized investment firms while offering investors a flexible and taxtransparent investment vehicle. It is expected to complement existing fund structures in the UK and may become the preferred choice for many in the industry.

The Association of Real Estate Funds (AREF) and the European Association for Investors in Non-Listed Real Estate Vehicles (INREV) have shown strong support for the RIF, highlighting its potential to enhance the UK’s fund range and provide additional options for institutional investors. The cooperation between government and industry bodies in developing the RIF has been lauded, with expectations of a swift uptake of the new investment vehicle in the market.