The new Reserved Investor Fund (RIF) is set to unlock billions for town centre regeneration and achieving net zero targets. The RIF, expected to be available to investors after the Royal Assent to the forthcoming Finance Bill 2024, has garnered widespread industry support.

The RIF legislation is advancing quickly through the latter stages of the Finance Bill, with Government consultation on draft tax regulations concluding on 14 May 2024. Designed to appeal to a broad range of investors, the RIF is based onshore in the UK, offering a transparent tax status that aligns with investors’ own circumstances.

The British Property Federation has praised the RIF as “quick to create and launch and straightforward to operate.” This simplicity and flexibility are expected to encourage more asset managers to adopt the fund structure.

Melville Rodrigues, head of real assets advisory at Apex Group and a member of the Association of Real Estate Funds Public Policy Committee, has led the initiative. He commented, “It has been wonderful for me to lead the industry initiative, working over several years with Government and regulatory officials and the real estate industry. It’s a privilege to have developed a rapport with officials and to have attracted such goodwill, expertise and enthusiasm within industry. The draft RIF tax regulations reflect a pragmatic and robust way forward for Government, the regulator and industry.

“With the RIF legislation being implemented, my passion is for the RIF to attract UK and international institutional capital (and in the process ease the burden on government finances) for regeneration of our town centres, more social and affordable housing and accelerating net zero goals. I’m looking forward to UK fund managers later this year launching RIFs.”