Morley Fund Management (‘Morley’), one of the UK’s largest property fund managers, has launched the Lime Property Fund – an institutional fund that focuses on long leases to quality tenants delivering secure income streams to investors. These income streams result in the fund aiming to enjoy a lower risk profile than typical commercial property investment.
Morley Fund Management (‘Morley’), one of the UK’s largest property fund managers, has launched the Lime Property Fund – an institutional fund that focuses on long leases to quality tenants delivering secure income streams to investors. These income streams result in the fund aiming to enjoy a lower risk profile than typical commercial property investment.
The Ł305m fund is biased to public sector assets, with 74% of rentals derived from the sector. The remaining 26% is from the retail, office and leisure sectors. The Fund has an average un-expired lease term of 24 years compared to an industry average of 11 years. It also has a target return of gilts plus 150 basis points per annum over the medium to long term and has a forecast income return of 6% in year one, stabilising at 7% thereafter.
The Fund is currently being marketed to UK investors and new investors have recently acquired Ł47m of units.
Commenting on the launch of the Fund, Phil Ellis, head of institutional property funds at Morley, said: "The Lime Property Fund has been designed to offer investors the benefit of a risk profile similar to gilts while enjoying target returns of gilts plus an attractive margin. With investors constantly searching for new sources of risk-adjusted returns, the Fund has already proved to be extremely popular for longer-term institutional investors."
Joel Lindsey, fund manager of the Lime Property Fund, said: "The Fund has a tailored portfolio of twenty properties and its distinctively high weighting to public sector assets provides long, secure income streams from a very good credit quality tenant base.
As the Fund grows, it will be seeking assets with similar attributes to continue to deliver investors with solid dependable returns. "
The Lime Property Fund is a Jersey Unit Trust, with a minimum investment of Ł1m.
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For further information please contact:
Fiona Baker, Head of Corporate Communications 020 7809 8617
Laura Cook, Corporate Communications Executive 020 7809 8125
Notes to Editors
Morley Fund Management
- Morley Fund Management (‘Morley’) is an independently managed, London based, asset management business with over Ł118 billion* under management (as at 30.09.04). It actively manages a diverse range of asset classes and employs in the region of 900 staff worldwide based in London, Singapore and an associate office in Boston**.
- Morley is a wholly owned subsidiary of the Aviva Group and manages both institutional and retail funds under the Morley brand. It also acts as investment manager for a range of retail investment funds, marketed in the UK by Norwich Union, and international funds marketed under the Aviva Funds brand.
*Not including mortgage assets
**Morley Fund Management International Limited, an Aviva company
Awards
- Property Week Awards 2004 – Best Property Fund Manager
- Pensions Management Provider Awards 2003 – Best Property Fund Manager
- Fund Manager of the Year - Pensions Week Awards 2002
- Specialist Manager of the Year - UK Pensions Awards 2002
- Insurance Fund Manager of the Year (awarded to Norwich Union) - Standard and Poor’s 2002
- Sustainable and Ethical Investment and Asset Management Award - Liveable City Awards 2002
Further information about Morley Fund Management can be found at www.morleyfm.com or www.morleyproperty.com