Pramerica launches UK real estate income fund

* Fund aimed at institutional investors seeking high income

* Targeting long-let, low volatility property

* Fund estimated to grow to $817 mln over five years

LONDON, Sept 21 (Reuters) - Pramerica Real Estate Investors, the European property arm of Prudential Financial (PRU.N), is to launch an open-ended fund for institutional investors keen to harness high income returns available in UK commercial property.

The Pramerica UK Real Income Fund will invest in a portfolio of assets with low levels of depreciation and volatility let to companies with low credit risk on long leases with fixed or inflation-linked rents.

The fund will target assets with potential to track and exceed the UK Retail Price Index by between 4 and 5 percent, after fees and costs, Pramerica said, adding that it could grow to 500 million pounds ($817.5 million) over the next five years.

The fund will be managed by Pramerica's newly established UK real estate team, comprising Paul Dennis Jones, Charles Crowe and Andrew Grigson, who departed en masse from UBS (UBSN.VX) Global Asset Management earlier this year. ($1=.6116 Pound) (Reporting by Sinead Cruise; editing by Simon Jessop) (See www.reutersrealestate.com for the global service for real estate professionals from Reuters)