M&G Real Estate brought its first U.K. value-add fund to an initial close with £125 million worth of commitments, CoStar U.K. reported.

The M&G UK Enhanced Value Fund, or UKEV, is targeted at institutional investors in the UK, Europe, Asia Pacific and Canada.

According to the report, an unnamed Asian investor made a "significant" commitment to the fund.

The seven-year, closed-ended fund aims to cash in on political uncertainty in the U.K. by investing in mispriced assets, valued at between £15 million to £75 million, in London, the South East and other key office markets in the country, the newswire noted.

M&G expects to fully invest a total of £500 million by 2021.