* Fund targeting distressed assets
* Will have up to 850 million sterling purchasing power
LONDON, May 22 (Reuters) - Property fund manager Mountgrange Investment Management LLP (MIM) has closed its first fund to snare cheap UK real estate buys after raising 300 million pounds ($474 million) of equity from bargain-hunting investors.
The Mountgrange Real Estate Opportunity Fund, which will target distressed property assets across Britain, is one of the largest fund raisings for a UK focused fund since the commercial property market went into a tailspin in June 2007.
With debt, the Fund will have 850 million pounds of purchasing power, Mountgrange said.
The fund has attracted more than 30 investors from around the world including the United States, Canada, Britain, Europe, the Middle East and Australia, with capital coming from endowment and pension funds, sovereign wealth funds, fund of funds, high net worth individuals and family offices.
"We believe there are opportunities in the UK which can provide substantial returns for our investors," said Manish Chande, a senior partner and founder of MIM.
"Our task now is to bring these identified opportunities to fruition and maximise their underlying potential," Chande said.
MIM was founded by leading property entrepreneurs Chande and Martin Myers, who have worked together for over 24 years creating and managing a number of property businesses including the former Land Securities outsourcing business, Trillium. ($1=.6331 Pound) (Reporting by Sinead Cruise; Editing by Jon Loades-Carter) (See www.reutersrealestate.com for the global service for real estate professionals from Reuters)