ING Real Estate Management, the property arm of ING's asset management unit, has launched a new property fund in the UK, where the asset class has seen an increasing interest from pension funds.

The ING fund will target smaller UK pension funds, which are increasingly committing assets to the sector. The property fund of funds will invest in a range of indirect property products, such as property unit trusts and limited partnerships. The fund already has £40m (€57.9m) in seed money from investors and ING aims to grow it to £250m in the next few years.