Knight Frank Investment Management said that it has raised £250 mln (€285 mln) of new equity in a third close for its Long Income Property Unit Trust (KFIM LIPUT).
This brings the total equity raised by the fund since launch in February 2016 to £750 mln.
The majority of original equity has been committed in 24 months, and comprises 58 separate assets spread across the UK and covering 'virtually the full spectrum' of traditional and alternative real estate sectors. The portfolio provides an aggregate property yield of around 5% with a weighted income duration of circa 20 years.
Kevin Aitchison, CEO KFIM, commented; 'LIPUT was our first fund and therefore its growth was always going to be important to the development of the KFIM business. However, of even more importance is our ability to deliver the targeted investment returns and, despite being in a segment of the market where there continues to be fierce competition, I am delighted that we have managed to deliver on both aspects.'
'We are delighted to have again received support for the fund from existing, and new investors,' added Matthew McDonald, fund manager of KFIM LIPUT. 'The market for our target assets has become increasingly crowded over the past two years, though despite this, the quality and investment characteristics of the assets acquired to date support a robust fund strategy. We have retained a focus on investing allocated capital efficiently and ahead of the fund’s investment timeline and we will continue to pursue this approach during 2018, actively seeking new opportunities.'