M&G Real Estate’s new value-add UK fund has bought its first assets for £50m (€57m).

M&G UK Enhanced Value Fund (UKEV), which raised £125m (€142.6m) at its first close in February, said it has bought 400,000sqft of office and logistics assets.

UKEV has acquired Charter Court, a 45,750 sqft office asset in Slough for £13m and also bought Radius House, a 41,250sqft office, in Watford for £15m.

The fund has also acquired Aviva’s Pebble portfolio of five mid-size logistics assets for £22m.

Managed by Paul Crosbie, UKEV is a seven-year, close-ended fund aimed at institutional investors in the UK, Europe, Asia Pacific and Canada.

The fund invests in mispriced assets in the UK, taking advantage of the risk aversion created by current political uncertainty.

Crosbie, said: “Securing our first office deals off-market reflects our ability to identify and source opportunities and our strong understanding of the occupational markets enables us to make targeted acquisitions.

“The fundamental lack of supply in these locations gives us the confidence to target assets that will benefit from active asset management and capital expenditure to improve income profiles and enhance capital values.”