Legal & General Property (LGP) announced that it has secured a further £100 mln (EUR 113 mln) of equity for its UK Property Income Fund. The new equity comes from an internationally diverse group of major global institutional investors based in France, Finland, Switzerland and Japan. The further investment will bring the fund's NAV to more than £250 mln and GAV to above £400 mln.

The fund seeks to generate returns of 15% geared and 10% ungeared through careful stock selection, focused on acquiring larger lot size assets which offer opportunities to add value during the life of the fund. The aim is to deliver two thirds of the target return through quarterly income distribution.

LGP said that the fund has a bespoke and highly innovative debt structure which enables both geared and ungeared subscriptions, providing investors with the flexibility to select their optimal level of leverage. Debt has been provided by Eurohypo.

New commitments have been evenly split between those with gearing and those without.

Having already invested £213 mln in the market, the fund's acquisitions include Fremlin Walk Shopping Centre in Maidstone, Guildford Business Park and a distribution centre at Andover (pre-let to Co-op).