Walls & Futures, the London-based property investment company, has launched a £20m central and south west London residential fund.

The Walls & Futures London Growth Fund intends to raise up to £10m of equity from private investors, which with a 50% gearing, would create £20m of spending power.

It is to be structured as a closed-ended Scottish Limited Partnership with a life of five years and will target returns of 10.49%.

The fund will target SIPPs, SSAS and direct investors with a minimum subscription of £25,000 and the asset manager will also co-invest alongside the limited partners.

Walls & Futures intends to generate returns by investing in quality properties in the Royal Borough of Kensington & Chelsea, Hammersmith & Fulham, Wandsworth and Merton.

The properties will be refurbished or redeveloped and let to young professional tenants in order to provide the fund with rental income and capital growth.

Dunadd Asset Management will operate the fund.

Joe McTaggart, managing director at Walls & Futures, said: ‘There is a fantastic opportunity for investors to re-enter the market however many are unable to do so due to the constraints in buy-to-let lending.

‘According to the Land Registry over the last 20 months the average house price in London has fallen from £355,934 to £306,934.

‘However the deposit required by an investor has increased 130% from £53,390 to £122,785, leaving property funds as an ideal way to invest.’