UK-based firm Standard Life Investments has announced the upcoming launch of a pan-European property recovery fund aimed at the advisory market.

The fund is designed for investors who can commit to a minimum investment of £50,000 ($82,500). It aims to deliver an annualised return of 12 per cent net of taxes, charges and other liabilities over its five-year lifespan. Standard Life Investments will attempt to raise up to £75 million in equity for the fund, and will seek to leverage the property portfolio by 60 per cent through borrowings, with a target gross asset value of £180 million.

“The fund has been specifically structured to provide professional investors with the opportunity to capitalise on our expectations for a recovery in property market returns. On a range of measures, we believe that commercial property is currently attractively priced and we would expect it to be of particular interest to tax-exempt investors,” said investment director Barry MacLennan.

Standard Life’s decision to launch a new property fund indicates a renewed confidence in the real estate market, which has slowly begun to recover in the aftermath of the credit crisis.