The fund, open only to sophisticated institutional investors, is fully seeded by Royal London.
RLUKREF will target prime properties in locations such as New Bond Street, Covent Garden and Trafalgar Square, across all major sectors.
According to Royal London, the fund will target a long-term investor horizon. It requires an initial investment of £50 million.
Piers Hillier, chief investment officer at RLAM said: “This fund launch is a vote of confidence in the UK and its real estate market. There are few places in the world with as many prime real estate assets as London, and we believe its property market presents an attractive opportunity for domestic and foreign institutional investors.”
He added: “The long-term outlook for UK property remains attractive and the prime nature of this offering provides an excellent opportunity for long-term investors to gain exposure to a high-quality and well-diversified property portfolio.”
Drew Watkins, senior fund manager at RLAM added: “This launch gives institutional investors a unique opportunity to access a significant number of quality property assets which are not often traded, and especially not within a single investment fund.”
RLAM currently manages over 300 properties with a value of £6.4 billion.