Article date: 1 August 2005
- Fund completes 5 transactions in first 6 months
- Fund raises an additional €30 million of equitycommitments
The Aviva Central European Property Fund (ACEPF), launched byMorley Fund Management and King Sturge in January 2005, hasappointed SachsenFonds as co-asset manager to the fund.SachsenFonds will work alongside King Sturge and be jointlyresponsible for the procurement of investment opportunities and theongoing asset management of the Fund across Central Europe.
SachsenFonds GmbH specialises in the structuring and syndicationof tax-privileged capital investments and has been one of thelargest investors in the Central European property market since2002 with the acquisition of a number of high profile buildings inWarsaw, Prague and Budapest.
Since launching the fund in January, ACEPF has already made fiveacquisitions totalling €116.5 million in value. Theseinclude: two office buildings in Warsaw (Poland); two logisticswarehouses in Poznan (Poland) and Bucharest (Romania); and AlkotasPoint in Budapest (Hungary). Alkotas Point was developed by AIGLincoln and is generally regarded as one of the highest qualityoffice buildings in Budapest. The fund is also aiming to completeon a further €35 million of investment transactions over thenext four weeks.
In June, the fund completed a second closing with commitmentsreceived from three new investors, bringing the total equitycommitments to approximately €110 million.
Commenting on the fund’s first six months, Julian Taylor,fund manager for ACEPF at Morley Fund Management, said: "The AvivaCentral European Property Fund has had a highly successful firstsix months seeing high investor interest combined with a strongpipeline of investment opportunities.
"We have picked the best of these opportunities, closing them inwhat is currently a very competitive market, and are building thefoundations of a high quality portfolio"
ACEPF was launched in January this year by Morley and istargeted at pan-European institutional investors and pensionschemes. The Fund will aim to raise in excess of €200 millionof equity commitments establishing a portfolio of investmentproperties across the office, warehouse and retail sectors over athree year period, with a total value of approximately €600million. The Fund aims to deliver a dividend yield to investors inexcess of 7.5% per annum and an investor IRR exceeding 12% perannum over its ten year life.
For further information please contact:
Laura Cook,Corporate Communications Executive 020 7809 8125
About the Central European Property Fund
Closed Ended: maximum 10 year life span
Minimum investment: €1 million
Currency Denomination: Euro
Maximum Gearing: 60% loan to value
King Sturge is one of the leading firmsof Chartered Surveyors in Europe. It has over 1400 staff in 33directly owned offices, including 60 staff in the Czech Republic,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.
SachsenFonds is a subsidiary ofLandesbank Sachsen Group. SachsenFond’s team of professionalshave experience of investment business in Germany andinternationally, often collaborating closely with experiencedGerman and international partners. Whilst experienced in all kindsof investment portfolios, SachsenFonds has particular expertise ofreal estate funds, being adviser or manager to in excess of 13 realestate funds as at 2004. Central Europe plays a major role inSachsenFonds investment focus with Central European investmentsaccounting for approximately 50 per cent. of SachsenFonds’real estate portfolio.
Morley Fund Management
Morley FundManagement (‘Morley’) is a London based, assetmanagement business with over £134 billion** under management. Theproperty team manages in excess of £17 billion of UK and Europeanproperty assets, making Morley the largest property fund manager inEurope. Winners of the high profile Property Week Fund Manager ofthe Year Award 2004 and the UK Pensions Awards Property FundManager of the Year 2005, the team consists of over 60 investmentprofessionals and manages a range of funds on behalf ofinstitutional, pension and retail clients. Morley has been at theforefront of innovation in property fund management and haslaunched thirteen specialist sector based funds with partners,including the Jersey-based Unit Trusts: Igloo Regeneration Fund,Quercus Healthcare Property, The Junction and The Mall.
**Not including mortgage assets, as at 30/06/05