Article date: 26 January 2005
Morley Fund Management (Morley), one of the UK's largest fundmanagers, has launched the Aviva Central European Property Fund(CEPF), targeted at pan European institutional investors andpension schemes.
The Aviva Central European Property Fund will invest directly ina diversified portfolio of office, industrial and retail property,with a focus on the core markets of Czech Republic, Hungary andPoland. The Fund's asset manager, King Sturge, has an extensivenetwork of offices across Central Europe and will procure assetsfor the Fund on an exclusive basis.
The Fund is a closed ended Luxembourg Fonds Commun de Placementand closings of the Fund will take place during 2005 to take theFund up to a target equity base of €200m. The Aviva CEPF willbe geared on a 50% loan to value basis, allowing a €400mproperty portfolio to be assembled over a three-year investmentperiod. The Fund aims to deliver a dividend yield to investors of7.5% to 8.0% per annum and an investor IRR exceeding 12% per annumover its ten year life.
Acting as fund manager, Morley will market and manage the Fund,working in partnership with King Sturge who will use theirspecialist local expertise to source and subsequently manage theproperties. Morley has successfully used this partnership model inthe UK for its eleven specialist sector based funds.
Commenting on the launch of the Aviva CEPF, Alan Gadd, head ofUK and European distribution at Morley Fund Management, said: "TheAviva Central European Property Fund brings together threeimportant attributes for institutional investors: propertyexpertise applied to a favourable economic background, gearing toenhance returns and the backing of a leading fund manager. Theseattributes make the Fund an ideal vehicle for investors seekinggood quality returns from relatively low-risk assets.
"We have already witnessed the positive impact of Europeanconvergence in Central Europe; EU accession has benefited the newmember states through falling inflation, declining interest ratesand converging legal and regulatory systems. We are looking toexploit these favourable market conditions for the investors in theFund."
Ben Stirling, European property fund manager at Morleycommented: "This Fund is the second continental European propertyvehicle we have announced since declaring our intention to moveinto continental European Property last August. These funds followour successful UK business model, where we seek to team up withproperty partners who are leading procurers and asset managers inchosen markets or property sectors. During 2005 we expect toannounce additional funds as Morley continues to expand itspresence on the continent.
"For the Aviva Central European Property Fund our partner isKing Sturge, who have an excellent team and track record in theFund's target markets. I am very confident that the Fund's managerscan together deliver excellent results for investors."
Phil Marsden at King Sturge said: "Our Central European networkof wholly owned offices has a full range of property services andhas been specifically set up to manage external funds into thesegrowth markets. The strong mix of both UK trained surveyors andlocal expertise will be co-ordinated through our Corporate Financeteam in London to provide the Fund with strategic advice across thecentral European region".
For further information please call:
LauraCook, Corporate Communications Executive
020 7809 8125
About the Central European PropertyFund
Structure: Luxembourg FCP
Closed Ended: maximum 10 year life span
Minimum investment: €1 million
Currency Denomination: Euro
Final Closing date: Expected to be mid-January 2006
Maximum Gearing: 50% loan to value
King Sturge is one of theleading firms of Chartered Surveyors in Europe. It has over 1400staff in 33 directly owned offices, including 60 staff in the CzechRepublic, Poland, Hungary, Croatia and Serbia. King Sturge managesapproximately €450 million of assets and has advised on€500 million of investment acquisitions in the CentralEuropean region. It has a dedicated research team of 16 analystsproviding top-down and bottom-up analysis and a disciplined andrigorous investment process with strong risk controls.
The property team atMorley manages in excess of £14 billion of UK Property assets (asat 31.12.04), making Morley one of the largest property fundmanagers in the UK. Winners of the high profile Property Week FundManager of the Year Award 2004, the team consists of 50 investmentprofessionals and manages a range of funds, including segregatedand pooled pensions as well as 2 retail unit trusts. Morley hasbeen at the forefront of innovation in property fund management andhas 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 FundManagement ('Morley') is an independently managed, London based,asset management business with over £118 billion* under management(as at 30.09.04). It actively manages a diverse range of assetclasses and employs in the region of 200 investment professionalsbased in London, Singapore and an associate office in Boston**.
Morley is a wholly owned subsidiary of the Aviva Group andmanages both institutional and retail funds under the Morley brand.It also acts as investment manager for a range of retail investmentfunds, marketed in the UK by Norwich Union, and international fundsmarketed under the Aviva Funds brand.
*Not including mortgage assets
**Morley Fund Management International Limited, an Avivacompany
- Property Week Awards 2004 - Best Property Fund Manager
- Pensions Management Provider Awards 2003 - Best Property FundManager
- 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 atwww.morleyfm.com
Contact us at Morley Fund Management, No. 1 Poultry, London EC2R8EJ.
Telephone calls may be recorded for training and monitoringpurposes.
Morley Fund Management is a business name of Morley FundManagement Limited, registered in England No. 1151805. A member ofthe Norwich Union Marketing Group, members of which are authorisedand regulated in the UK by the Financial Services Authority forlife assurance, pensions and investments. Registered Office: No. 1Poultry, London EC2R 8EJ. A member of the Investment ManagementAssociation.
Morley Fund Management is also a business name of MorleyInvestment Services Limited and Morley Fund ManagementInternational Limited. All are Aviva.