UK - Rockspring Property Investment Managers has raised £336m (€409m) in capital commitments for its UK Value fund from 12 pension funds and institutional investors from Europe and Australasia.
Violaine Brown, spokeswoman for Rockspring, said investors were attracted to the fund's strategy of focusing on finding value across the UK real estate market.
The fund was created in 2009 to invest in commercial real estate, joint ventures and pooled and unitised property vehicles where there is scope for near-term capital appreciation and income growth.
There is no pre-determined geographical or sector allocation, allowing a flexible approach to acquisitions while maintaining an appropriate diversification of risk.
The fund targets a net annual distribution yield of 7% and a net total return of 13% a year, while its duration is seven years, with a two-year investment period.
It focuses on small to medium-sized assets primarily in the office, retail and industrial sectors, targeting properties that have the ability to offer either an existing relatively high cash yield or the potential for yield growth enhanced by a modest level of gearing.
The final closing of the fund means it will have total spending power of approximately €700m, when gearing is taken into account.
Neal Shegog, director of the fund, said Rockspring's ability to raise such a "significant amount" of equity in the current market was a strong reflection of its track record.
"With its value-driven approach, the fund will look to provide a sustainable income stream we can grow through active asset management," he added.
To date, the fund has acquired office and retail assets totalling £82m, including The Precinct in Tyne and Wear for £10.1m; The Mall in Aberdeen for £47.4m; 65 Southwark Street in London for £8.6m; and Exchange House in Milton Keynes for £15.8m.
Rockspring said there was a strong pipeline of further investment opportunities, but would not confirm whether it had acquired four shopping centres from the Mall fund, managed by Capital & Regional.
Capital & Regional announced on Friday that the Mall fund had conditionally exchanged contracts with clients of Rockspring for the sale of four shopping centres at a price of £136m, but Rockspring declined to comment.
The four shopping centres, all based in England, are the Eastgate Shopping Centre in Gloucester, the Marlands Shopping Centre in Southampton, The Liberty 2 Shopping Centre in Romford and the Howgate Shopping Centre in Falkirk.
