Legal & General Property has closed its second UK Property Income Fund, raising £403m (€562m).

The investment manager said the fund was backed by 16 international investors, with seven having backed L&G’s first fund, UKPIF I, which closed in 2011.

With gearing, the second fund will invest £610m in core and core-plus properties.

As was the case with L&G’s previous fund, investors can choose a preferred level of leverage between 0% and 50% loan to value.

UKPIF I secured £300m in 2011 for the first fund from 14 institutional investors, with half opting to have no gearing at all and favouring a pure property exposure.

The other half chose a modest risk exposure, with levels ranging from 20% to 50%.

The second fund will target a net IRR of 8-9% for ungeared investors and a net IRR of 12-14% for geared investors.

Charlie Walker, director and fund manager of the funds, said L&G would deploy capital in “attractive UK acquisitions”.

As with UK PIF I, the fund will invest over a seven-year lifespan, with Legal & General Group also investing.

L&G said it had so far bought two assets for the second fund, investing £213m in Birmingham and Dundee.