Moorfield has raised £350m (€446m) from US, European and Japanese investors for its UK-focused opportunistic/value-added real estate fund.

The private equity manager’s Moorfield Real Estate Fund III received £250m of discretionary capital commitments and £100m of co-investment commitments.

Moorfield said it would supplement the equity with joint venture capital, taking the fund’s equity to around £500m over the next three years.

Marc Gilbard, chief executive at Moorfield, said the raising gave MREFIII the flexibility to deploy a “significant amount” of leveraged capital in the UK real estate market.

Investors in the fund are “split broadly equally between existing and new relationships”, the company said.

“We are pleased to have been able to expand our investor base in terms of geography and investor type,” Gilbard added. 

MREFIII is targeting 15-20% IRR returns for the fund, which recently bought an office property in west London from Threadneedle Investments for £22m.

The funds has also invested in assets in Aberdeen, Manchester, Liverpool and Edinburgh.

Moorfield said MREFIII would target sectors and sub-sectors with “attractive supply and demand dynamics”.

Last monthMoorfield’s Real Estate Fund (MREF) and Real Estate Fund II (MREFII) agreed to sell a diversified real estate investment portfolio to Lone Star Real Estate Fund III for around £1bn.