Kames Capital has announced the launch of a second version of its UK Active Value Property Unit Trust, with a £50m seed investment from West Midlands Pension Fund.

The seven-year closed-ended Active Value Property Fund II follows on from the success of its predecessor, which raised £275m, and will follow the same investment strategy, targeting secondary commercial properties in the £5m to £15m range.

The new fund will aim to raise £250m and will be managed by Philip Bach, backed up by the Kames property team.

According to Kames, the result of the EU Referendum is leading to high levels of volatility in the UK commercial property market, which in turn is providing opportunities for active investors to acquire good-quality secondary assets.

“The UK secondary property market offers an attractive and stable income yield and provides an effective complement to our existing core real estate holdings,” said Mike Hardwick, head of alternatives and fixed income for the West Midlands Pension Fund. “We were attracted to Kames Capital’s active value approach and the depth and quality of the team behind the new fund.”