The £2.6bn Leicestershire County Council Pension Fund has awarded Kames Capital a £25m property mandate.
The mandate will be invested in the Kames UK Active Value Property fund managed by Philip Bach.
The fund targets good quality secondary properties, particularly those under £15m, which Kames believe provide access to good quality assets offering attractive income returns together with asset management opportunities, such as through extending leases, letting vacant space and refurbishments.
It is structured as a Jersey Property Unit Trust – a unit trust governed by Jersey law used to hold real estate – and has a seven-year life, with the opportunity to extend for a further two years. The fund has a target return of 8-10% per annum.
Kames Capital head of institutional property sales Shaun McWilliam said: “We are delighted to welcome Leicestershire County Council Pension Fund as the latest investor in our active value strategy. We are continuing to raise assets and expect to close the fund to new investors by the end of 2014.”
Leicester is the fourth local authority pension fund to invest in the strategy after Kent County Council, Kensington and Chelsea Borough Council and the West Midlands Pension Fund.
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