EUROPE - Property managers are more likely to restructure and re-launch existing funds than launch new ones in an environment characterised by cautious capital, according to Mayfair Capital fund manager Guy Brogden.

"It's easier to raise money for an existing fund where investors can see the assets than to raise a blind fund," he told IP Real Estate.

The fund manager earlier this month re-launched the £38m (€43.7m) MC Income Plus fund after converting it from a limited partnership to an open-ended unit trust after UK tax authorities agreed to exempt the fund from stamp duty.

He said growing pension fund appetite for income returns from commercial property had driven the move.

The fund now has a target size of £100m within 12-18 months.

"We could see the opportunity for growth and diversification," said Brogden, who plans to move the fund down the risk curve from its current core-plus profile to core.

However, the fund management firm - which launched the first stamp duty-exempt property unit trust for charities - has no imminent plans to restructure any of its other funds.

"We weren't the first to do it, but it is a very difficult thing to do," said Brogden. "Some larger fund managers are looking to do it for various reasons - either to box off a group of assets or to avoid a run on the fund."

In addition to the 90% of investors that have remained with the fund, Brogden said he intended to open it up to new corporate and local authority pension schemes and those run by charities.