CBRE Global Multi Manager and Palmer Capital are to invest £250m (€313m) in UK value-add and opportunistic real estate.

Palmer Capital will source properties and sites for CBRE Global Investors’ multi-manager platform for the four-year fund.

CBRE GMM, which has invested with Palmer Capital in the past, is targeting a 15% IRR from the investment for institutional clients.

Palmer Capital chief executive Alex Price told IP Real Estate he believed there was an opportunity to buy value-add and opportunistic real estate in the next two to three years.

He said: “With many properties in need of repositioning, there’s still a lot of opportunity across the UK.

“We are not buying the market, we are buying opportunity.”

The fund would, he said, pursue niche strategies such as office-to-residential conversions and invest across the UK. Price said Palmer Capital was looking at large regional centres and London for opportunities.

The agreement is CBRE GMM’s sixth joint venture in the past 12 months. The Multi Manager platform has formed ventures with Ardstone Capital for UK regional offices as well as for Dublin offices and retail. UK student housing has also been targeted through a partnership with Curlew Capital.

The platform is also investing in the US through a debt fund and a fund targeting neighbourhood shopping centres. In Germany it is investing though a mezzanine debt fund.

CBRE GMM chief executive Jeremy Plummer said the partnership would take total capital commitments to programmatic joint ventures to more than £800m.