UK - Real estate agency Knight Frank has launched a new segregated investment management business for pension funds and other institutional investors seeking to invest in UK real estate.

Knight Frank Investors - which has approximately £500m (€565m) of UK property assets under management - will be led by John Styles and Richard White, formerly Rutley Capital Partners' investment managers.

The new fund management firm has already acquired two UK office buildings on behalf of the Lancashire Country Pension Fund.

Benson House in Leeds has been acquired for £20m from MEPC, and 10 Brook Street in London's Mayfair has been bought for £30.2m from IVG Funds.

Existing clients of Knight Frank Investors  also have a further £100m to invest across the UK commercial market in the next 12 months.

"Investment management is core to our business and is a service we are continuing to grow," said Alistair Elliott, head of commercial division at Knight Frank.

"We are pleased that the launch of Knight Frank Investors has coincided with several key deals for our longstanding clients and anticipate a rewarding year ahead."

Rutley Capital Partners ceased operating in December 2009 following Black Sea Global Properties' acquisition of its European real estate fund, Rutley European Property Limited, and its decision to transfer Rutley Capital Partners' management into the fund.

Former Rutley employee Styles, now a partner at Knight Frank Investors, said: "Given the strong demand for property from our investor base this is an exciting time to be launching the business.

"We are keen to expand our investment management service to UK and overseas pension funds and private banks; building on our long-term track record of delivering strong investment performance for existing clients."

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