Property fund manager Cordea Savills is targeting charities with its second land fund.
The fund, Serviced Land Two, will have a targeted return of 15 per cent a year over five years and aims to raise £50m.
It follows the success of Savills' first land fund, which opened last year with the aim of increasing the value of land by obtaining planning permission and selling portions as 'serviced sites' to developers. Third party debt will be used to increase returns to investors. The first land fund has so far acquired three assets at a combined cost of £11.9m.
"Market conditions are ideal for investing in land because the under-supply of housing means the value of land remains high, while there is a substantial difference in price between land with and without planning consent," said Steve Taylor, director of Cordea Savills.
The minimum investment for Serviced Land Two will be £25,000 for private investors and £250,000 for institutions.