Morley Fund Management and Warner Estate Holdings PLC have today exchanged contracts to acquire a £120m office portfolio from the Co-operative Insurance Society (CIS) for the newly created Apia Regional Office Fund.
Morley Fund Management and Warner Estate Holdings PLC have today exchanged contracts to acquire a Ł120m office portfolio from the Co-operative Insurance Society (CIS) for the newly created Apia Regional Office Fund.
This transaction reflects a net initial yield of 6.7% and a nominal equivalent yield of 6.9%. Completion is scheduled for 21 December 2005. The Ł120m office portfolio is part of the Principal Portfolio being purchased from CIS for Ł159m, the balance of the portfolio, including the Royals Shopping Centre, Southend, is being acquired for the Warner Estate’s Core portfolio along with a leasehold liability portfolio of 105 ex-CIS offices.
The Apia Fund, which was launched on 7 June 2005, has an existing property portfolio of Ł261m assets under management, and is one of 11 specialist property funds managed by Morley. The Fund’s investment focus is on large office properties in major regional cities throughout the UK and is open to institutional investment via cash or by contributing suitable property assets.
Sian Humphrey, fund manager for the Apia Regional Office Fund at Morley Fund Management, said: “The Apia Fund was only launched in June and so this acquisition is a great step toward achieving our goal of growing the fund to Ł750m. The portfolio we have acquired is in line with the fund's investment focus and on completion we will own 20 offices bringing the total assets to Ł380m. The fund offers investors the opportunity of a diversified exposure to regional offices through an actively managed portfolio of properties in major regional centres.”
The portfolio comprises the following seven office investments
New Telecom House, College Street in Aberdeen,
Sussex House, 1-9 Gloucester Place, Brighton.
Lomond House, 9 George Street, Glasgow
Sunlight House, Quay Street, Manchester
Hampshire Court, Newcastle Business Park, Newcastle
York House, Mansfield Road, Nottingham
Preston Office Centre, Preston
The property team at Morley manages in excess of Ł17 billion of UK and European property assets, making Morley one of the largest property fund managers in Europe. The team consists of over 70 investment professionals and manages a range of funds, including segregated and pooled pension funds as well as a retail unit trust.
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For further information please contact:
Fiona Baker
Morley Fund Management
07736 883832
The Apia Regional Office Fund is an English Limited Partnership and an unregulated collective investment scheme in the UK.
Notes to editors
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 70 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.
**Not including mortgage assets, as at 30/06/05
Further information can be found at www.morleyproperty.com