Fund manager Cova Properties is planning to launch a third Ardawn Developments property fund that will seek to raise about €100 million in equity from the 500 investors who backed the two existing funds.

This follows the publication of annual reports for the first two funds, which show they have made significant returns for investors since they were launched in 2005 and 2006.

Commenting on the move, Cova chief executive Pat Shine said: "The Ardawn funds have performed very well for us and we're now looking at launching a third one. It will only be open to those investors who have backed the other funds. We felt this was only fair."

The first Ardawn fund raised €56.1 million in equity in March 2005. Data for this fund shows that its net asset value grew by 21.5 per cent to €75.7 million last year. The fund became fully invested in 2006 and had gross land assets of €137.5 million at the end of December.

It is developing properties in counties Wicklow and Kildare.

The board managing the fund includes Peter Murray, a former chairman of Anglo Irish Bank, and Seán Lyne, a leading property developer from Co Clare.

Ardawn II completed its €101.6 million fundraising in March 2006 and is 80 per cent invested. The fund's net asset value, once financing costs were stripped out, rose by 4.1 per cent in the nine-month period after its launch.

The board of directors managing Ardawn II includes Eamonn Quinn, son of Senator Feargal Quinn and a former deputy chairman of Superquinn, and Mr Murray. Ardawn II has invested in sites in counties Wicklow, Wexford, Dublin and Westmeath.

Both of the Ardawn funds are medium-term investments with an investment horizon of up to seven years. NCB handled both fundraisings.

Cova was set up in 1998 by Mr Shine, who was a partner in PricewaterhouseCoopers; former estate agent Bill Mulrooney; and property developer Brendan Fitzsimons. The company has €500 million of assets under management and develops sites in the greater Dublin area.