Hunter Real Estate Investment Management has raised £64m (€86.7m) for a UK high street retail core-plus, value-add strategy.
Aviva Investors Real Estate Multi Manager (REMM) backed the fund, which will invest in small, high street units across the UK.
Alistair Dryer, senior fund manager at Aviva Investors REMM, said now was an “opportune point” for clients in the investment cycle.
The new Hunter UK Retail Trust fund will be leveraged at around 30% and aim for around 10% returns.
Assets will be bought for the fund over the next 18 months, according to Mark Hunter, founder of the manager.
Three deals in UK town centres are currently being finalised.
“The UK high street has undergone a dramatic revolution in recent years,” he told IP Real Estate.
“The outlook is now clearer, and there are certainly pockets of growth now – particularly in affluent towns and cities.
“The high street continues to offer opportunities for consistent returns in certain pockets around the UK.”
Hunter said the UK was reaching a point where the effects of online shopping were more clearly understood.
The new vehicle is a “son of” fund following the company’s first vehicle, the Retail Plus Property Trust, a joint Hunter/Rockspring fund, which has now closed, having invested £130m.
Aviva also backed that fund.
Hunter has in the past worked with Oaktree Capital Management and Canada’s Alberta Investment Management, according to media reports.