CDP Capital--part of Caisse de dépôt et placement du Québec--is backing the fund along with a UK corporate pension fund, a UK property unit trust and one of Schroders' own subsidiaries. A second closing in December 2001 will aim to bring in a further £34 million ($50 million).

The seven-year limited partnership is aiming for maximum flexibility, and the managers will have the option to invest in standing investments and developments; interests in shared ownership vehicles; joint ventures with specialist > managers and developers as well as securities in quoted and unquoted property companies.

Schroders director Joe Froud said:'We are excited by the prospect of having such a flexible pool of capital at a time of limited property market liquidity and anticipate the emergence of some interesting investment opportunities over the coming 12 to 18 months.'