Knight Frank Investment Management’s first open-ended fund is on target to deploy £100m in its first six months since launch.
The KFIM Long Income Property Unit Trust has completed on six acquisitions across the UK valued at around £40m in total and providing a 5% yield across a 20-year income.
It has also exchanged on a further three assets valued at around £20m in total, with another two assets in the pipeline.
Fund manager Matthew McDonald said the fund filled a gap left by many of the large balanced-income funds because it could focus on smaller assets valued at between £3m and £20m.
The fund is UK-only but is able to invest in any sector and any region as long as the income criteria fits with the target for the fund.
McDonald said the fund was aiming for a return of 250bps over the 15-year gilt but that it intended to do better than this and deliver an attractive dividend yield to its institutional investors.
McDonald joined KFIM in January last year in order to help establish the fund, having run a similar fund within CBRE Global Investors.
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