Jersey’s real estate investment fund landscape continues to evolve at pace, with the sector’s net asset value (NAV) in the “Specialist–Real Property” category surpassing £28.4 billion across 176 funds and 96 separate pools as of 30 June 2025. This robust growth reflects Jersey’s enduring appeal as a leading offshore jurisdiction for property funds, REITs, and other real estate investment vehicles. With significant regulatory advancements – including the phased repeal of the Control of Borrowing (Jersey) Order (COBO), enhancements to the Jersey Private Fund (JPF) regime, and professional advisory leadership – Jersey is well positioned to serve the needs of institutional investors, managers, and service providers. For a comprehensive overview of global fund industry trends and insights, visit the Damalion blog.
This article explores the latest developments in Jersey’s real estate investment fund market, the implications for fund sponsors and investors, and how vehicle selection and structuring strategies – such as SIF, RAIF, and SICAR – can optimise cross-border property exposure, VAT efficiency, and multi-jurisdictional holding chains.
Jersey’s Real Estate Fund Market: Growth and Composition
As of mid-2025, Jersey-serviced real estate funds accounted for £28,415 million in NAV, distributed across 176 funds and 96 separate pools, according to the Jersey Financial Services Commission (JFSC). This positions Jersey as a premier destination for managers seeking to structure core, value-add, logistics, and residential property funds offshore. The total fund assets under administration in Jersey exceeded US$501.6 billion, reflecting a 7% year-on-year increase, supported by a 4% rise in the number of sub-funds.
The diversity of Jersey’s real estate investment vehicles enables a broad spectrum of strategies – from core and core-plus to opportunistic and development-focused funds. In particular, the growth in logistics and residential property funds, including those targeting prime London assets, has been notable, driven by both UK-based and international cornerstone investors.
Regulatory Transformation: COBO Reform and the JPF Regime
Jersey’s regulatory landscape has undergone significant transformation, enhancing its competitiveness and appeal for real estate fund sponsors and investors. The phased repeal of the Control of Borrowing (Jersey) Order (COBO), with the 2026 Amendment Order removing COBO consent requirements for non-fund unit trusts and expanding exemptions, streamlines the launch and operation of property vehicles. Further COBO simplification is expected to conclude by 2027, further reducing friction and regulatory burden for fund managers.
The Jersey Private Fund (JPF) regime continues to be a cornerstone of Jersey’s alternative funds offering. Since its 2017 inception, over 1,400 JPFs have been authorised, with approximately 100 new JPFs launched in 2025 alone. The JPF is particularly attractive for real estate strategies due to its fast-track approval, investor cap flexibility, and tailored governance requirements – supporting both institutional and sophisticated private capital inflows. Recent enhancements include expanded professional investor definitions and operational efficiency improvements, ensuring Jersey’s relevance for a broad spectrum of real estate investment strategies.
Market Participants and Service Ecosystem
Jersey’s success as a real estate fund centre is underpinned by a mature ecosystem of legal, administrative, and fiduciary service providers. Carey Olsen, for example, advised on half of all Jersey-domiciled fund launches between July 2024 and June 2025, supporting 707 Jersey-domiciled funds or sub-funds and accounting for more than 40% of fund numbers and over 35% of aggregate AUM in the jurisdiction. Leading administrators such as Fairway provide global support for real estate, private equity, and infrastructure vehicles, reinforcing Jersey’s operational resilience and investor confidence.
The arrival of Butterfield’s discretionary investment management services in Jersey in May 2026, including its accessible Multi-Asset Fund offering, further broadens the range of available asset management solutions. The combination of legal expertise, fund administration, and investment services makes Jersey an attractive near-shore alternative for sponsors and LPs seeking a stable, flexible, and transparent domicile.
Structuring Considerations: Vehicles, VAT, and Cross-Border Chains
Fund sponsors evaluating Jersey must carefully consider vehicle selection to align with investor expectations, tax efficiency, and regulatory requirements. Damalion advises on the optimal use of Specialised Investment Funds (SIFs), Reserved Alternative Investment Funds (RAIFs), and SICARs, drawing on the strengths of both Jersey and other leading fund jurisdictions. Jersey’s regulatory clarity and proactive adaptation – evidenced by COBO reform and the JPF regime – facilitate bespoke structuring for core, value-add, logistics, and residential real estate funds.
VAT structuring remains a critical concern for multi-jurisdictional real estate funds, particularly those investing in European Union property markets. Jersey’s status as a non-EU jurisdiction, combined with its robust double tax treaty network and evolving local regulation, allows for efficient VAT planning and the creation of property holding chains optimised for investor returns. For more detail on structuring real estate investments across Europe, see Luxembourg Real Estate Investment Funds: Growth, Regulation, and Vehicle Selection in Europe’s Fund Capital.
Managers and investors targeting Spanish, Italian, or Maltese property markets can benefit from Jersey’s flexible fund solutions, often in combination with Luxembourg or Malta-based structures. Strategic coordination of fund vehicles and holding entities across jurisdictions can unlock additional advantages in asset protection, regulatory certainty, and investor appeal. For a practical guide to structuring cross-border real estate funds, refer to How to Set Up a Luxembourg SCSp Fund to Invest in Spanish Real Estate (Madrid, Barcelona, Malaga & More) and Italy distressed real estate fund setup in Luxembourg | SCSp & RAIF structures.
Outlook and Opportunities
The Jersey real estate investment fund sector is set for continued expansion, supported by regulatory streamlining, growing investor sophistication, and a deepening service ecosystem. With ongoing COBO reform and enhancements to the JPF regime, Jersey maintains its appeal for global property fund sponsors pursuing core, value-add, logistics, and residential strategies. The jurisdiction’s capacity to accommodate complex cross-border fund structures, combined with its established legal and administrative infrastructure, ensures that Jersey remains a key player in the evolving world of real estate capital.
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