South African property investment group Old Mutual Investment Group Property Investments is set to launch a new socially responsible investment (SRI) property fund in early 2009.

The fund will concentrate its investment activities in underdeveloped areas of South Africa and the wider continent, such as townships and urban regeneration projects.

Old Mutual hopes to attract investment inflows of R5bn (£317,13m) within five years - Old Mutual has put in seed funding of R800m (£50,83m) GBP.

Speaking to Property Week at MAPIC, fund manager Vusi Nondo, said the SRI real estate fund is aiming to deliver medium to long term returns of 6.5% above the South African rate of inflation, which currently stands at about 10%.

The fund will invest in traditional retail, industrial and office assets as well as affordable housing and social infrastructure projects such as health and educational developments.