London-based Clavis Walden, a newly-formed independent fund management firm specialising in commercial real estate, intends to launch the industry's first PAIF (property authorised investment fund) subject to approval from the Financial Services Authority and HM Revenue & Customs.

A PAIF is an open-ended equivalent of a real estate investment trust with a tax efficient structure that allows gross distributions to qualifying investors.

The company will initially adopt income-yielding investment strategies arising from what it sees as current opportunities in the commercial property market.

Founded by Iain Keys as managing director, with Robin Hill as head of fund management and Jamie Farquhar as head of distribution, Clavis Walden will primarily target institutional and professional/discretionary investors including multi-managers, wealth managers, private client managers, pension funds and charities. 

Mr Keys said: “The price correction seen over the last two years has opened a window for us to invest in the market at pricing levels not seen for over 15 years. Low gilt rates and a significant outward yield shift across the wider commercial property market has resulted in the recent re-emergence of a significant positive yield gap.”