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 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.