Schroder Exempt Property Unit Trust, Schroder’s flagship UK core property fund launched in 1971, is opening up to more investors as it will be converted to a Property Authorised Investment Fund.

A so-called PAIF is described as a tax-efficient UK fund structure authorised by the Financial Services Authority.

Schroders said that the conversion will open the fund to a broader investor base, including UK and overseas professional investors, for the first time. The fund had £1.2 billion ($1.88 billion) of UK commercial property at the end of June and its investors are today mainly UK pension funds and charities.

The investment management firm believes that the fund will meet what is sees as an increase in demand for commercial property investment in the UK.

"The aim is now to ensure the rental income derived from the portfolio continues to be let to financially secure tenants and vacancy rates are kept low," said Ian Mason, SEPUT fund manager.

Schroders had £10.2 billion of gross real estate assets under management at the end of March, and around 100 property staff across the UK and Europe.