The Charities Property Fund, the common investment fund managed by Carr Sheppards Crosthwaite, has reached £100 million.
Health research charity the King's Fund is among new investors over the past quarter.
The charity's trustees decided to place 5 per cent of its £120 million investment portfolio in indirectly invested property funds. The Charities Property Fund has received £3 million, with the same amount going to the Triton Property Fund.
Frank Jackson, director of resources at the King's Fund, said: "We are hoping for better returns at lower risk and lower volatility. The new property fund element is helping to achieve a good balance in the King's Fund portfolio."
Charles Mesquita, charities specialist at Carr Sheppards Cros-thwaite, said that property was fast becoming a mainstream, rather than an alternative, asset class. "At a time when global interest rates have been falling, commercial property generally offers a predictable source of income."