Asset management company Henderson Global Investors is to create a second fund to take advantage of current commercial property prices in central London.
The fund, named CLOF II (Central London Offices Fund II), will invest in properties in key locations and will look to return around 12%. Henderson are hoping to raise £200 million equity from UK and foreign investors by the end of the year.
The original CLOF was launched in 2004. An eight-year, closed-ended fund, it invested in a similar range of properties and has recently been valued at above £500 million, representing a return of nearly 7.5%.
CLOF II will be a seven-year fund, although like its predecessor it will be able to return capital earlier under the right conditions; at the end of last year CLOF returned £100 million to investors. Both funds are managed by Clive Castle.