The investment vehicle established in a joint venture between TwentyFour Asset Management and Rutley Capital Partners, the real estate investment management arm of the Knight Frank property group, is expected to begin road-showing this month. The vehicle - understood to be the first of its kind - will purchase senior debt secured on portfolios of prime commercial properties in the UK and Europe.

With senior commercial property debt currently trading at deep discounts, the two firms believe that the combination of their skills is essential at this stage in the cycle. Mark Holman, managing partner at TwentyFour, says: "With triple-A rated commercial mortgage debt trading at significant discounts to face value, the opportunity has probably never been so compelling. We have been working with the partners at Rutley for six months now and are convinced that the partnership will provide clients with the optimal opportunity in our sector. Understanding both what the physical property markets are doing, as well as the specialised debt markets will ensure that we cover all angles in making our investment decisions."

The vehicle will aim to deliver returns of approximately 10% per annum over the medium term. But the two firms acknowledge that, with many markets normalising, it is possible that returns could come in quicker and higher than expected - in which case investors would be offered an early redemption opportunity.