Hearthstone Investments, a specialist residential property fund manager, has received a seed investment deal of £22.5 million (€28.4 million), spread over three tranches, from Barratt Developments, a UK housebuilder. As part of the arrangements, Barratt will contribute a portfolio of showhomes that will then be licensed back to the company.

“We are thrilled to secure the early support of Barratt for the Hearthstone fund. Barratt’s showhome portfolio, together with that of our other partners, will provide the fund with immediate scale and income, giving investors and their advisers the ability to invest with confidence,” says Christopher Down, founder and chief executive of Hearthstone.

The TM Hearthstone UK Residential Property Fund is the first FSA-authorised residential property fund.