First Property Group has entered into an agreement to launch a £125m fund with the Shipbuilding Industries Pension Scheme (SIPS).

First Property Group

SIPS has committed a minimum of £125m for an initial term of ten years.

The fund will be underleveraged and will target a net total annual return of 7%.

Investment will be focused on the UK, across all sectors including office, retail, industrial and residential.

Ben Habib, chief executive of First Property Group, said: “The broad mandate enables us to tailor our investment approach to prevailing market conditions and to deploy capital where it is likely to earn the highest returns.”