The UK Long Lease Property Fund is the latest offering from AXA Real Estate Investment Managers. It will target sectors ranging from traditional long-lease assets such as supermarkets, distribution centres and offices to more alternative assets such as healthcare, social housing, student accommodation, hotels, leisure, automotive and ground leases.

The aim is to maintain a long-weighted, unexpired average lease term of 20 years or more, mostly with inflation indexation or fixed rental uplifts underpinned by tenant covenants. This strategy is expected to generate long-term and stable income streams often with inflation indexation, suitable for institutional investors such as pension schemes that are looking for investments with liability-matching attributes.

AXA Real Estate has raised an initial £125 million (about $200 million) and aims to grow the fund to a size of around £1 billion over the next five years.

The company is the largest real estate portfolio and asset manager in Europe, with over €43 billion (about $57 billion) of assets under management at September 2012.