Legal and General has capitalised on the new Isa rules for property funds with the launch of the L&G UK Property unit trust.
Aiming to deliver income and capital growth, the fund was launched at the end of February and invests in a diversified portfolio of commercial property, including retail, office and industrial sectors.
The portfolio launched with 37 properties and is managed by Michael Barrie, who is the director of the L&G property division. Targeting an initial 5.4% property yield, the fund was launched with &105m of assets, &100m of which is in property assets with the other &5m held in cash. The trust looks to hold a minimum of 75% of its assets in bricks and mortar.
Exclusively invested in the UK, the portfolio launches with a 13% weighting in London properties and a total of 30% in the South East; 35.9% of the trust's sector breakdown is currently in retail, with 32.3% in offices.
Two global vehicles
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