KFIM, the investment management arm of Knight Frank, has raised £300m (€389m) in a first close for its new open-ended fund.
Pension funds advised by Willis Towers Watson backed the vehicle.
KFIM said the vehicle has a low-risk approach and would seek a long-term income return, targeting well-let assets with strong underlying property fundamentals.
Kevin Aitchison, chief executive at KFIM, said: “Launching our first fund is an important step in the ongoing development of the KFIM business.”
The equity was, Aitchison said, provided by pension funds looking for “innovative secure income investment solutions with attractive fund terms, as well as structures that align interests”.
He added: “We have already identified a good pipeline of potential opportunities – the focus will now be on ensuring we invest the money as quickly and efficiently as possible.”
Matthew McDonald was recruited from CBREGI last year as fund manager for the vehicle.