First Property, a business quoted on London’s Alternative Investment Market exchange, has set up a new UK commercial property fund similar to an existing portfolio that is now almost fully invested.

Called the Fprop Sterling Income Fund, the portfolio is expected, the firm said yesterday, to follow a similar investment strategy to its UK PPP fund.

The property firm seeks to raise between £100 million (around $156 million) and £300 million for the new fund. It is mainly aimed at institutional clients but the firm will also seek to meet retail demand if needed, a spokesperson for First Property told this publication.

The existing fund, which uses no debt gearing, was created in February 2010 for three pension fund clients; the fund now pays a dividend yield over 6.4 per cent per year.

First Property has operations in the UK and Poland.