AFH Financial, the Worcestershire-based IFA firm listed on the London Stock Exchange’s Plus SX index, has announced the launch of a new property fund that will allow clients to invest in a portfolio of high yielding commercial and residential properties.

The firm claims that the St John’s High Yield Property Fund, which it describes as a ‘property authorised investment fund’, is the “first of its kind” in the UK, offering investors 6 per cent to 9 per cent annual yield without the use of debt financing.

According to a statement, the fund will seek to acquire an initial portfolio of £20m worth of commercial and residential property, with this figure rising to £50m depending on the availability of suitable properties. The size of each ‘lot’ will be between £2m and £5m.

The fund will focus on the Midlands region initially, but has a mandate that allows it to invest across England and Wales.

AFH’s statement says: “The Fund has been designed to pursue a core strategy focussing on well-let but higher yielding mainstream industrial, office and retail properties.

“The Fund is ungeared and therefore able to move quickly and decisively when suitable opportunities are identified. Sale and leaseback deals will also be considered.”