Specialist investment manager Kames Capital has raised £115m from institutions to target secondary assets worth £15m or less.
The closed-ended Active Value Property Fund will invest in office, retail and industrial assets in the UK, targeting 8-10% pa
The fund is expected to grow to around £200m, with Kames anticipating a second close nine months from now.
“The sub-£15m space in the secondary market is an area often neglected by large property funds. It is also probably out of reach for the majority of smaller investors, especially now that debt for such properties is hard to come by and expensive,” said David Wise, Kames’ director.
The fund will have a seven-year life with the option to extend by two years.
Kames already manages an £100m open-ended secondary property fund that has returned 8.5% pa since its launch in 2009. It joins Aviva, which raised £90m for a secondary property fund in September, and Fidelity, which has been fundraising since December.
sophia.furber@estatesgazette.com
