Square Mile investment house Fairfax is expected to cock a snook at City doom-mongers when it reveals it has raised £150m for the launch of a new property fund to be run by the activist investor Laxey Partners. Independent on Sunday

When the property company is floated at the end of the month, it will be the biggest listing on the junior AIM market his year.

It is expected to have a war chest of at least £500m when borrowings are added to the money generated by current fund raising.

The Laxey fund will invest in undervalued property assets. Laxey is run by Colin Kingsnorth, one of the most successful but controversial activist investors in the City.

Fairfax has been further boosted by the arrival of high-profile salesman Darren Winter who joined the group just days after his departure from Collins Stewart following a bust up over the hiring of two senior salesmen from Evolution in September.