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Listed on the London Stock Exchange, the Candy & Candy Growth fund will be structured as a seven-year, closed-end vehicle registered in Guernsey.

Listed on the London Stock Exchange, the Candy & Candy Growth fund will be structured as a seven-year, closed-end vehicle registered in Guernsey.

CPC - Christian Candy's property development company - will act as investment manager, while Candy & Candy will provide interior design and property-management services.

Smith & Williamson Investment Management said the fund aimed to raise approximately £100m through equity and debt finance and that CPC would focus on acquiring properties in the so-called 'golden postcodes', including W1, W9, SW1, SW3, SW7, NW1 and NW8.

The manager will take an "active asset-management role", according to CPC, acquiring properties immediately after the fund's close and undertaking extensive renovation to properties prior to disposal towards the end of the fund's term.

Mr Candy said few commentators would question the "viability" of central London residential property as an asset class.

He said: "We now have the opportunity to acquire stock at realistic prices, while rental demand remains high, and capital values are beginning to move in the right direction."

Nick Candy, chief executive of Candy & Candy, touted his company's "proven track record", having designed more than 100 properties for private clients.

"Our extensive interior design and project management experience and expertise means we are well placed to design the fund's portfolio of properties, for sale, when tenancy expires," he said. "Furthermore, Candy & Candy-designed properties are recognised for yielding value in the market."

Martin Sherwood, head of tax efficient solutions at Smith & Williamson, said: "Investors in this fund will benefit from both the investment expertise of some of the property industry's leading entrepreneurs of recent years and the ability to enhance values through active management and leading-edge design."

Smith & Williamson Investment Management said the fund would also be available for investment by pension funds, including Sipps and SASSs.