The Stellar Baltic Fund will capitalise on the developing property market in the Baltic States, working in partnership with Baltic property specialist Bristol and Stone, and Capital City Developments.

The fund’s investment strategy is to develop a diversified portfolio aimed at providing asset growth over the short to medium term. The fund will explore both development and planning changes as well as more conventional opportunities.

Jonathan Gain, chief executive at Stellar Asset Management, says, ‘This is a particularly exciting venture as the fund has been seeded with six properties, allowing investors entry at the original purchase cost.

‘There is a window of opportunity to invest before the first valuation at which time there may be an uplift in value. We have known Bristol and Stone, the fund’s property advisers, for many years and have been impressed with their unique ability to source interesting transactions where there is excellent potential for generating substantial returns.’

It will seek annual total returns to investors of 15 per cent. The fund will be a closed-ended limited partnership and is seeking to raise £10 million. Minimum investment is £25,000.