Tritax has launched a property income fund targeting assets outside London.

The company said the Tritax Property Income Fund (TPIF) would complement its Tritax Big Box REIT.

Structured as an open-ended Jersey unit trust, the fund has £115m (€147.5m) in seed capital.

Tritax is looking to grow the fund to more than £500m over the medium term.

The fund will take an income-focused, core-plus approach outside central London. 

The company recently recruited Tim Legge for the strategy.

With leverage of up to 25%, Tritax said the fund aimed to deliver 70-80% of its total return through a target annual distribution of 5.5%.

The fund was launched following negotiations with UK investment consultancy and fiduciary manager P-Solve, which merged in 2014 with River and Mercantile.

Tamsin Evans, head of multi-asset at P-Solve, said the fund was the result of a “classic coming together of demand and supply”.

“We came to the conclusion that an opportunity exists for attractive, risk-adjusted returns in select regions and sectors of the UK commercial property market,” Evans said.