Leicestershire County Council Pension Fund has joined other UK pension funds in the closed-ended Kames UK Active Value Property Fund.

The local authority pension fund has committed £25m to the seven-year fund which is targeting secondary properties with individual lot sizes of less than £15m.

Leicestershire County Council is the fourth local authority pension fund to invest in the fund after Kent County Council, Kensington & Chelsea Borough Council and the West Midlands Pension Fund.

Kames said it had raised £205m since launching the fund in October last year, with £140m invested and a further £40m currently under offer. The fund has an annual target return of 8-10%.

Shaun McWilliam, head of institutional sales for property, said Kames hoped to raise more capital for the fund and to reach a final close by the end of the year. 

The fund, Kames added, invests in properties with capacity for lease extension, vacancy reduction and refurbishment, with a preference for opportunities outside central London.

Speaking to IP Real Estate when the fund launched late last year, Kames property director David Wise said there were still plenty of opportunities in the secondary property market.