A new investment trust is set to launch, which allows you to place buy-to-let property investments directly into your pension.

The Mill Residential REIT, launched by the Mill Group, is the first to invest solely in UK buy-to-let residential property. Mill Group claims that this trust has been designed for investors keen to gain exposure to buy-to-let property, without taking on the risks and hassles of becoming amateur landlords.

So what is a REIT? And is this a smart way to get some property in your pension?

Since 2007, UK investors have been able to invest in commercial property via specialist trusts known as real estate investment trusts (REITs). These close-ended trusts have shares that are publicly listed on the London Stock Exchange and trade during market hours, just as other equities do.

REITs allow investors to assume the risks and rewards of holding UK property, without having to buy buildings directly. Until now, REITs could own commercial and residential property, but did not venture into the letting of owner-occupied buildings.

Mill Group expects to float this REIT in London this month and, to get started, it has raised seed capital of over £2 million from its managers. In addition, it is offering £300,000 of shares directly to the public via crowd-funding site SyndicateRoom. The minimum investment via SyndicateRoom is £1,000 and shares in the initial public offering (IPO) are being offered to both institutional and crowd-funding investors.

Mill Residential owns a portfolio of buy-to-let residential properties and, as a REIT, will pay no tax on its main rental income and profits from sales (its capital gains). In addition, investors owning shares in the trust inside ISAs or self-invested personal pensions (SIPPs) will enjoy tax-free dividends and capital gains, delivering huge tax advantages to these shareholders.

Read more about this investment opporunity and whether it may be right for you.