In a statement, Cordea said the open-ended fund had already raised GBP70m from three investors including Aviva Investors, a global multi-manager and a European pension fund.

According to Investment Management Association, the trade body for the UK's £3000bn asset management industry, appetite for commercial property investment has increased due to a sudden rise of interest from institutional and retail investors.

Reportedly, several UK fund managers have their vehicles lined up, competing in the field of prime property. However, the fundraising comes against a backdrop of increasing fears about the recovery, as the speed of the bounce has led to questions about sustainability.

George Tindley, fund director, said: "Despite uncertain prospects in the short term, we believe that UK prime commercial property is fairly priced and will perform well again once the occupational markets return to strength."

William Hill, head of property at Schroders, which will launch a recovery fund later this year, said: "Investors looking for a quick return should think again. Property is near to being fair value but just don't expect it to be a straight line. Pricing is still attractive, particularly for the managers who can find the right stock."