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United Overseas Bank, Singapore's third largest lender, said it has teamed up with UK asset management company Hermes to set up a US$400 millionUS property fund.

UOB said a joint venture between the Singapore lender and HGF Investor Fund will team up with Hermes Real Estate Investment Management to set up the fund which will make long-term investments in commercial real-estate in the United States.

HGF Investor Fund is a unit of US -based Hampshire Real Estate Companies, which has more than $1 billion worth of equity under management and assets valued at over US$2.5 billion, according to a UOB filing to Singapore Exchange.

"The fund is targeting to raise US$400 million including the sponsors' commitments," she said adding that the fund plans to invest in commercial properties outside the central business district of US cities primarily in eastern United States.