In the 16 months since its launch the Charities Property Fund has purchased eleven properties across the UK. Recent acquisitions include offices in Colchester, Essex, and central London and warehouses in Manchester and Tewkesbury, Gloucestershire.

Savills Fund Management director Alison Puhar said: 'We have built up a well-let portfolio of long income that even in its first year should outperform the Investment property Databank Index. The portfolio should show a net income to investors of 7%.'

The fund managers believe this relatively high level of income--beating both equities and bonds--is attractive to charities, and because the fund is also exempt from the 'stamp duty' property transfer tax it is a more tax efficient route for investment than the range of property unit trusts that are available.

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