The fund, structured as a Scottish Limited Partnership has been created with Citigroup and Halladale co-investing£55 million of initial equity. In time, the managers aim to expand the fund to£300 million.
Cream will operate for six to eight years and will be open to both institutional and private investors. It will invest primarily in UK retail property, but the managers reserve the right to invest in other sectors as appropriate.
The fund has already made its first acquisition, the 80,000 sq ft (7,430 sq m) Angel Place Shopping Centre at Bridgwater in Somerset, which it bought for£16.3 million.
Tenants at the scheme include Iceland, Superdrug, Wilkinson, Adams and Bonmarche, and the price reflects a net initial yield of 6.5 per cent.
Citigroup Property Investors European managing director Michael Walton said: 'We are delighted to have closed this significant retail investment programme with such eminent partners as Halladale. Citigroup has made a£49.5 million commitment to this initiative, and looks forward to introducing further institutional and private investors to co-invest with us.'
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