Aviva Investors has launched a long-lease real estate fund targeting continental Europe.

The Aviva Investors Continental European Long Lease Strategy Fund has attracted an initial €105m in a first close.

The vehicle has been backed by two insurance investors.

Ed Casal, chief executive, global real estate, said: “We believe that a defensive cash flow-focused strategy can assist our investors in meeting their cash flow matching requirements.”

Aviva Investors said it is aiming to deliver secure, predictable cash flow from predominately index-linked leases.

The portfolio will consist of Continental European properties, with an initial focus on office, retail and alternative sectors in Germany, Austria, Benelux and Scandinavia.

Assets will be long-leased to high quality tenants, with remaining lease terms of typically at least 15 years.

The fund will aim to make quarterly income distributions of between 4% and 5%.