Cordea Savills has completed its first purchase for its second service land fund.

It has bought 321 acres (131ha) of greenfield land near Newport in South Wales for £2.55m for service Land No 2 Fund. It is the first purchase for the fund which was launched after Cordea Savills’ Service Land No 1 was fully invested in July 2006.

The property investment manager will seek to increase the value of the site by promoting it for inclusion in the local authority’s forthcoming development plan. Cordea Savills will work alongside highways and environmental consultants for the next 18 months before submitting its proposals.

Steve Taylor, director at Cordea Savills said: ‘There is a healthy appetite from both institutions and private individuals for this type of investment. The purchase of a second site for the fund should be completed shortly and we have a further £65m of assets in various stages of due diligence.’