Royal London, the mutual insurer, is opening up a £2.7bn UK property investment fund to outside money — making it the largest ever to launch on the institutional market.

The fund is a combination of two portfolios run for Royal London's with-profits funds, pools of investments that fund payouts to the mutual group's members. It is being opened to outside investors for the first time, targeting institutional investors with a minimum £50m investment, the firm said in a statement.