A group of US institutional investors and hedge funds are backing the £750 million IPO of a European real estate investment vehicle, as the transatlantic push for property acquisitions gathers pace.

Fidelity Investments, Wellington Management, Franklin Templeton and Louis Bacon's Moore Capital Management are among 12 investors buying a combined £685 million cornerstone stake in the London flotation of Kennedy Wilson Europe Real Estate, according to a stock exchange announcement this morning.