Threadneedle Investments, the fourth largest UK retail investment fund manager, today launched its first UK authorised property unit trust.

The Threadneedle UK Property Trust is targeting a 4% net yield return based on income and capital appreciation primarily through investment in direct property and property-related securities and collective investment schemes.

The fund will be managed by Don Jordison and Chris Morrogh, two senior members of the Threadneedle Property Team, who run funds with more than £1bn assets under management.

Jordison said: ‘We think there is a good possibility of double digit returns from the commercial property market this year. We believe that there is a sufficient amount of property in the market which can offer high yield returns without paying the high price demanded of prime investments – it is those areas that we seek to invest in.’

The fund is open to ISA, PEP and SIPP investors investing a minimum £1,000 stake.