Real estate investment firm evolve Fund Services is readying to launch a £50 million (US$83.6 million) fund aimed at taking advantage of the recovering property market in the UK.

From the first closing date before Christmas, the new vehicle, the All Saints Fund, will begin to acquire a portfolio of prime property. According to the firm, it will seek a spread of risk between locations and the main real estate sectors, but also consider mixed use schemes, supermarkets, student and healthcare related accommodation, joint ventures, mezzanine funding and indirect investment.

“After calling the ‘market threat’ back in 2005, we have waited over four years to return to the commercial property investment market,” said Hugh Colville, co-founder and director of evolve Fund Services. “A combination of the 40-50% fall in values from the mid 2007 peak, plus comparatively high income potential and low interest rates gives us an opportunity to benefit from unique market conditions. Our aspiration for the fund is not to make big returns in a hot market, but rather a safe investment for longer term secure income and capital growth for our investors.”

The All Saints Fund is offering investors a distribution of 5-7% p.a. and an anticipated total return of 12% p.a. IRR based on a fund life of seven years.

“The fund has a wide brief for stock selection, but a clear mandate to deliver attractiveincome and capital growth for investors with a minimum of risk. We intend to be as opportunistic as possible in our acquisitions but will be keeping the gearing below 50%,” added Colville.

The fund is structured as a Limited Partnership, a tax-transparent vehicle, and will be registered in the UK.