Morley Fund Management (Morley), one of Europe’s largest property fund managers, and Teesland iOG have launched the Central European Industrial Fund. The fund will invest in Central European multi-let industrial estates with a focus on Poland, the Czech Republic and Hungary. The fund will complete its first closing of equity within the next two weeks.
Morley Fund Management (Morley), one of Europe’s largest property fund managers, and Teesland iOG have launched the Central European Industrial Fund. The fund will invest in Central European multi-let industrial estates with a focus on Poland, the Czech Republic and Hungary. The fund will complete its first closing of equity within the next two weeks.
The fund will be a Luxembourg fonds commun de placement (FCP) and is aiming to assemble a €400m portfolio over a three-year investment period. Once fully invested the Fund will have a target return of at least 12% per annum and an average distribution yield of above 9.5%
The fund will have initial equity commitments of €54m, including €50m from the Norwich Union Life Funds with the balance representing a co-investment from Teesland iOG. Four estates are already under offer and will shortly be acquired by the fund.
The objective is to raise a total of €160m of equity and the fund will be open to European institutional investors and pension schemes.
Acting as fund manager, Morley will market and manage the fund as well as providing overall fund strategy. Morley is a leading UK-based property fund manager with over €24bn in property funds under management. Morley now manages a wide range of specialist property funds, six of which are invested in continental Europe, and has extensive experience in structuring funds together with asset manager partners working to deliver outperformance for investors.
As asset manager Teesland iOG will use its specialist European industrial property expertise to source and subsequently manage the properties in the portfolio. Teesland iOG is a specialist asset manager of multi-let industrial property across Europe and has offices in cities across the continent, including Warsaw.
Commenting on the fund, Ben Stirling, European Property Fund Manager at Morley, said: "This is the latest in the series of new funds we have launched since declaring our intention to move into continental European property a year ago. We are already active in central Europe on a number of fronts, as we believe that the ongoing development of these markets since their entry into the EU, together with strong projected GDP growth, gives opportunities to generate compelling returns for investors. We believe that the multi-let industrial sector is particularly attractive as a result of its high yielding characteristics and the opportunity to add value through asset management initiatives.
"We are delighted to be working with Teesland iOG who are excellent asset managers with unique skills in this sector, a solid track record on the Continent and a strong team dedicated to central Europe".
John Sims, from Teesland iOG, said: "This exciting business plan for central Europe follows the well established Teesland iOG template of extensive local market research and stock identification ahead of the acquisition programme.
"We have an extremely strong team for these territories and we are very pleased to be working with Morley again, whose clients were amongst our core initial investors in the original iOG UK Industrial Investment Funds."
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For Further information please contact:
Laura Cook, Corporate Communications Executive,
Morley Fund Management +44 (0)20 7809 8125
Mickola Wilson, Chief Executive,
Teesland plc +44 (0)20 7659 4700
Richard Sunderland/Rachel Drysdale
Tavistock Communications (on behalf of Teesland plc) +44 (0)20 7920 3150
Notes to Editors:
Teesland iOG
Teesland plc is a leading independent European property fund and asset manager which specialises in the creation of indirect property vehicles and the provision of specialist property asset management skills. Teesland, which has offices across Europe, is capitalised about Ł95 million and operates in three specific areas:
Property Fund Management
In October 2004, Teesland acquired Property Fund Management plc for a total consideration of Ł34.47 million, providing it with a European footprint (offices in London, Edinburgh, Leeds, Birmingham, Paris, Amsterdam, Copenhagen, Warsaw and Berlin).
It has some Ł2.3 billion under management in 13 funds across the residential, university housing, mixed commercial, retail and industrial/business sectors.
Property Asset Management and Property Management
Teesland undertakes asset management on behalf of clients where its responsibility is the improvement of the performance and quality of properties owned by its funds or other clients.
Development and Project Management
Teesland also has a team which undertakes for fees the development and project management of major property schemes across the UK.
Morley Fund Management
Morley builds European Property Business
August 2004 – Morley announces intention to invest Ł1 billion in continental European property on behalf of major life fund client. Appoints Ben Stirling as European Fund Manager.
September 2004 – Morley and Parkridge launch the €200m Parkridge European Distribution Fund to develop and own distribution warehouse parks in Central Europe.
September 2004 – Morley appoints Julian Taylor as fund manager from Heitman International.
November 2004 – Morley invests €100m in to the Pillar European Retail Park Fund and takes up a strategic management role for this Fund.
January 2005 – Morley launches the Aviva Central European Property Fund, aimed at institutional investors looking for exposure to the Central European Property market.
May 2005 – Morley appointed as fund manager to the newly launched Tri Investments European Residential Property Fund.
July 2005 – Morley appoints Gilles Chow and Gil Bar as fund managers.
About Morley Fund Management
Morley Fund Management (‘Morley’) is a London based, asset management business with over Ł134 billion (€198 bn)** under management. The property team manages in excess of Ł17 billion (€24bn) of UK and European property assets, making Morley one of the largest property fund manager in Europe. Winners of the high profile Property Week Fund Manager of the Year Award 2004 and the UK Pensions Awards 2005 Property Fund Manager of the Year, the team consists of over 60 investment professionals and manages a range of funds on behalf of institutional, pension and retail clients. Morley has been at the forefront of innovation in property fund management and has launched a range of specialist sector based funds, including: Igloo Regeneration Fund, Quercus Healthcare Property, The Junction and The Mall.
Visit www.morleyproperty.com
**Not including mortgage assets, as at 30/06/05