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Kames closes on £155m for UK ‘active value’

Dutch-owned asset manager is scouting secondary investments that larger investors ‘often overlook’.

Kames Capital has raised £155 million (€187 million; $259 million) for a UK property fund with the purpose of picking off smaller property deals overlooked by larger firms.

The asset management company, which is owned Aegon, the Dutch savings and insurance giant, said it had just finished raising capital for its UK Active Value Property Fund.

The latest investors are Kent County Council’s Superannuation Fund and Molins UK Pension Fund, which committed £30 million and £10 million to the vehicle respectively. The update follows an announcement last October when it said it had raised £115m million.

The firm is targeting returns of 8 percent to 10 percent for the UK Active Value Property Fund over its seven-year lifespan. It has an opportunity to extend the fund by two further years.

Kames explained it had already invested the £115 million raised last year and that investments included a retail warehouse in South Shields, in the north east of England, occupied by a home improvement store chain.
Explaining the strategy, David Wise, director of property, said: “The smaller end of the secondary property market is still often overlooked by some of the bigger players, but it is an area which offer lots of good value stock with asset management potential.”

Kames used to be called Aegon Asset Management until 2011 when it was renamed. The firm’s head of property investment is Phil Clark, formerly of Aviva Investors, while head of indirect property is Mark Bunney, the former ING Real Estate professional who joined in 2012.

It has £53 billion of total assets under management split between fixed income, equities, multi-assets and property and employs a total of 265 people across offices in Edinburgh in Scotland and London.