Palmer Capital has launched its fifth value-added UK real estate fund with backing from CBRE Global Investment Partners (GIP).

CBRE GIP and Palmer Capital, which was acquired by Fiera Capital Corporation in March this year, have set up the £250m (€291m) Fiera Real Estate Opportunity Fund V (FREOF V) to target active asset management investments and projects with change of planning use potential across the industrial and office markets as well as mixed-use schemes.

The fund will have a maximum six-year duration with a two-year investment window and will target a 12% to 15% internal rate of return to its institutional investor clients of CBRE GIP.

Fiera Capital, which owns an 80% interest in Palmer Capital, will be rebranding to Fiera Real Estate UK in January 2020. The launch of FREOF V marks the first fund launch since the acquisition.

Dugal Hunt, region head of UK, CBRE GIP said: “We are very pleased with the launch of FREOF V, another example of our successful partnership with Palmer Capital.

“The fund is a continuation of the same development and active asset management strategy that has delivered strong returns for our clients, and we look forward to working with Palmer Capital on the latest fund in this series.”

Chris Button, fund manager at Palmer Capital, said: “We are delighted to launch the latest fund in our partnership with CBRE GIP.

“The combination of our clients’ institutional capital and our regional property company operating platform gives us a significant advantage in sourcing projects and delivering our value add business plans.”

The previous four funds in the series have invested a total of £600m.