Kames launches second U.K. property unit trust
Kames Capital has plans to launch a second version of its closed-end U.K. Active Value Property Unit Trust with a £50 million ($67 million) seed investment from U.K.-basedWest Midlands Pension Fund.
The new fund will aim to raise £250 million ($333 million) and will have a target distribution yield of approximately 6.5 percent per year gross of AMC (paid quarterly).
The launch of the seven-year closed-end Active Value Property Fund II follows the success of its first fund, the U.K. Active Value Property Unit Trust, which raised £275 million ($366 million). It will follow the original fund’s investment strategy, targeting the good-quality secondary commercial property market, particularly those properties in the £5 million ($6.7 million) to £15 million ($20 million) price bracket.
The new Active Value Property Fund II has a seven-year lifecycle with the opportunity to extend for a further two years. The fund structur