The closed-ended vehicle will follow the original open-ended investment strategy, which targets good quality secondary property, with a particular focus on assets priced under £15m.
Kames, which has been running its Active Value strategy for nearly four years, believes value can be found outside of the prime London markets so long as solid assets with attractive income prospects are secured. Asset management can then be used to add value over the longer term.
Kames’ latest launch will be managed by Helen Batten, part of the Kames property investment team. She will report to Kames’ property director, David Wise.
The existing open-ended Active Value Property Fund, which has a net initial yield of over 8% and does not use debt, has delivered a return of 8.5% per annum to investors since its inception in December 2009. This compares favourably with the IPD/AREF benchmark return of 7.2% per annum.
The Closed-Ended Active Value Property Fund has a seven year life with the opportunity to extend for a further two years. The fund has been structured as a Jersey property unit trust and has a target return of between 8% and 10% a year.
