UK pension funds are investing in a new real estate fund that plans to capitalise on opportunities created by Brexit.
First Property said it raised 拢179m (鈧�204m) from eight occupational pension schemes for Fprop Offices, a fund that will invest in office blocks and business parks across England.
The company, which has also commited 拢3m, said the fund is well placed to benefit from opportunities arising from the UK鈥檚 planned departure from the EU.
It expects to raise more equity later this year.
Ben Habib, chief executive of First Property, said: 鈥淭he UK鈥檚 decision to leave the EU has created opportunities on which we, as a niche fund manager, are well placed to capitalise.鈥�
Investments by the fund may be leveraged up to a maximum loan-to-value ratio of 30%, which means the fund has an initial 拢260m to invest.
The asset manager said it had now raised some 拢250m of equity commitments from third parties since the UK referendum in June last year 鈥� partly to take advantage of the slowdown in the UK commercial property market, it said.
