ING Real Estate Investment Management’s Osiris fund of funds has topped £200m.
Fund manager Mark Bunney said that, despite a tight market, the capital was virtually fully invested, with just 1% unallocated. “We can still invest although the market is tight, like the direct market. As we are a reasonable size, we do get players coming to us with secondary trades,” he said.
He added that the fund was expected to grow to £250m by the end of the year.
Osiris, the UK’s first fund of funds, was launched in 2003 to provide smaller investors with a balanced exposure to the UK market. It now has 27 investors and invests in 23 property vehicles, giving investors exposure to £12bn of property.
Recent investments include the Henderson UK Shopping Centre Fund and Scottish Widows’ Airport Industrial Property Fund.
The fund had delivered a 20.4% performance in the 12 months to March 2005, compared with a 18.5% return on the APUT/HSBC pooled funds index.
Bunney said investors were primarily small pension funds allocating around £1m-£3m to the fund. Other investors had traded their stakes in funds for units in Osiris.
The minimum investment in the fund is £100,000.
ING’s fund of funds business, which includes multi-manager accounts, stands at £1.4bn.
