Morley Fund Management (Morley), one of the UK's largest fund managers, has launched the Aviva Central European Property Fund (CEPF), targeted at pan European institutional investors and pension schemes.
Morley Fund Management (Morley), one of the UK's largest fund managers, has launched the Aviva Central European Property Fund (CEPF), targeted at pan European institutional investors and pension schemes.
The Aviva Central European Property Fund will invest directly in a diversified portfolio of office, industrial and retail property, with a focus on the core markets of Czech Republic, Hungary and Poland. The Fund's asset manager, King Sturge, has an extensive network of offices across Central Europe and will procure assets for the Fund on an exclusive basis.
The Fund is a closed ended Luxembourg Fonds Commun de Placement and closings of the Fund will take place during 2005 to take the Fund up to a target equity base of €200m. The Aviva CEPF will be geared on a 50% loan to value basis, allowing a €400m property portfolio to be assembled over a three-year investment period. The Fund aims to deliver a dividend yield to investors of 7.5% to 8.0% per annum and an investor IRR exceeding 12% per annum over its ten year life.
Acting as fund manager, Morley will market and manage the Fund, working in partnership with King Sturge who will use their specialist local expertise to source and subsequently manage the properties. Morley has successfully used this partnership model in the UK for its eleven specialist sector based funds.
Commenting on the launch of the Aviva CEPF, Alan Gadd, head of UK and European distribution at Morley Fund Management, said: "The Aviva Central European Property Fund brings together three important attributes for institutional investors: property expertise applied to a favourable economic background, gearing to enhance returns and the backing of a leading fund manager. These attributes make the Fund an ideal vehicle for investors seeking good quality returns from relatively low-risk assets.
"We have already witnessed the positive impact of European convergence in Central Europe; EU accession has benefited the new member states through falling inflation, declining interest rates and converging legal and regulatory systems. We are looking to exploit these favourable market conditions for the investors in the Fund."
Ben Stirling, European property fund manager at Morley commented: "This Fund is the second continental European property vehicle we have announced since declaring our intention to move into continental European Property last August. These funds follow our successful UK business model, where we seek to team up with property partners who are leading procurers and asset managers in chosen markets or property sectors. During 2005 we expect to announce additional funds as Morley continues to expand its presence on the continent.
"For the Aviva Central European Property Fund our partner is King Sturge, who have an excellent team and track record in the Fund's target markets. I am very confident that the Fund's managers can together deliver excellent results for investors."
Phil Marsden at King Sturge said: "Our Central European network of wholly owned offices has a full range of property services and has been specifically set up to manage external funds into these growth markets. The strong mix of both UK trained surveyors and local expertise will be co-ordinated through our Corporate Finance team in London to provide the Fund with strategic advice across the central European region".
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For further information please call:
Laura Cook, Corporate Communications Executive
020 7809 8125
Laura.cook@morleyfm.com
About the Central European Property Fund
Structure: Luxembourg FCP
Closed Ended: maximum 10 year life span
Minimum investment: €1 million
Distribution: quarterly
Currency Denomination: Euro
Pricing: quarterly
Final Closing date: Expected to be mid-January 2006
Maximum Gearing: 50% loan to value
King Sturge
King Sturge is one of the leading firms of Chartered Surveyors in Europe. It has over 1400 staff in 33 directly owned offices, including 60 staff in the Czech Republic, Poland, Hungary, Croatia and Serbia. King Sturge manages approximately €450 million of assets and has advised on €500 million of investment acquisitions in the Central European region. It has a dedicated research team of 16 analysts providing top-down and bottom-up analysis and a disciplined and rigorous investment process with strong risk controls.
Morley Property
The property team at Morley manages in excess of Ł14 billion of UK Property assets (as at 31.12.04), making Morley one of the largest property fund managers in the UK. Winners of the high profile Property Week Fund Manager of the Year Award 2004, the team consists of 50 investment professionals and manages a range of funds, including segregated and pooled pensions as well as 2 retail unit trusts. Morley has been at the forefront of innovation in property fund management and has launched eleven specialist sector based funds with partners, including the Jersey-based Unit Trusts: Ashtenne Industrial Fund, Quercus Healthcare Property, The Junction and The Mall.
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 200 investment professionals 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
Contact us at Morley Fund Management, No. 1 Poultry, London EC2R 8EJ.
Telephone calls may be recorded for training and monitoring purposes.
Morley Fund Management is a business name of Morley Fund Management Limited, registered in England No. 1151805. A member of the Norwich Union Marketing Group, members of which are authorised and regulated in the UK by the Financial Services Authority for life assurance, pensions and investments. Registered Office: No. 1 Poultry, London EC2R 8EJ. A member of the Investment Management Association.
Morley Fund Management is also a business name of Morley Investment Services Limited and Morley Fund Management International Limited. All are Aviva.