KFIM’s Long Income Fund secures £750m of committed equity

Knight Frank Investment Management’s Long Income Property Unit Trust (KFIM LIPUT) has successfully concluded a third close, raising £250m of new equity in addition to the £500m raised since the Fund’s launch in February 2016.

The majority of original equity has been committed in just over 24 months, and comprises 58 separate assets spread across the UK and covering virtually the full spectrum of traditional and alternative real estate sectors. The portfolio currently provides an aggregate property yield of around 5% with a weighted income duration of circa 20 years.

The new equity will be used to target new assets in line with the existing Fund strategy.

Kevin Aitchison, CEO KFIM, commented; “LIPUT was our first Fund and therefore its growth was always going to be important to the development of the KFIM business. However, of even more importance is our ability to deliver the targeted investment returns and, despite being in a segment of the market where there continues to be fierce competition, I am delighted that we have managed to deliver on both aspects. This success is testament to the skill and hard work of the LIPUT team, led by Matt McDonald (Fund Manager) and Mike Maddox (assistant FM)”.

Matthew McDonald, Fund Manager, KFIM LIPUT, commented; “We are delighted to have again received support for the Fund from existing, and new investors. The market for our target assets has become increasingly crowded over the past 2 years, though despite this, the quality and investment characteristics of the assets acquired to date support a robust Fund Strategy. We have retained a focus on investing allocated capital efficiently and ahead of the fund’s investment timeline and we will continue to pursue this approach during 2018, actively seeking new opportunities”