Kames Capital’s second value property fund has received a further £50m (€56.4m) from two UK pension schemes.
Leicestershire County Council Pension Fund and the University of Liverpool Pension Fund have together committed the amount to the Kames UK Active Value Property Unit Trust II.
Kames Capital’s active value strategy targets commercial property assets with typical lot sizes between £5m and £15m.
The Kames UK Active Value Property Unit Trust II is a successor vehicle to the Kames UK Active Value Property Unit Trust, which raised £275m from institutional investors and closed to new commitments in 2014.
Leicestershire County joined other UK pension funds in the first closed-ended Kames UK value property fund.
IPE Real Assets also reported that the West Midlands Pension Fund has seeded Kames Capital’s closed-end UK Active Value Property Fund II with £50m.
The seven-year fund is targeting a £250m raise.
Colin Pratt, the investments manager of the Leicestershire County, said: As existing investors, we understand the approach and the quality of the team behind the Fund. We are delighted to make a further commitment.”
Philip Bach, Kames Capital’s head of active value property, said: “We expect steady, if unspectacular, returns from commercial property over the next few years. Income will be the main driver of performance with a slight rise in rents offset by a modest rise in yields as interest rates trend upwards.
“We expect stock selection to be a stronger driver of performance than structural factors, so sector weightings are less relevant to performance prospects than owning the right assets in the right locations.”
