Pan-European real estate fund manager Palmer Capital has closed a new development fund spun off from its Palmer Capital Development Fund II (PCDF II).

The new fund will have GBP 100 mln (EUR 116 mln) of equity to invest in real estate projects over the next four years, with more than half available for immediate investment in new deal opportunities.

The new fund has been created using a legal structure establishing a new parallel limited partnership to mirror the terms of the existing PCDF II. Almost all of the existing investors in PCDF II have agreed to roll their participations over into the new fund which goes live on 1 October 2011.

Since June 2010 the unit price of the PCDF II has increased by 10%, outpacing comparative IPD indices.