Article date: 17 August 2005
Morley Fund Management (Morley), one of Europe’s largestproperty fund managers, and Teesland iOG have launched the CentralEuropean Industrial Fund. The fund will invest in Central Europeanmulti-let industrial estates with a focus on Poland, the CzechRepublic and Hungary. The fund will complete its first closing ofequity within the next two weeks.
The fund will be a Luxembourg fonds commun deplacement (FCP) and is aiming to assemble a €400mportfolio over a three-year investment period. Once fully investedthe Fund will have a target return of at least 12% per annum and anaverage distribution yield of above 9.5%
The fund will have initial equity commitments of€54m, including €50m from the Norwich Union Life Fundswith the balance representing a co-investment from Teesland iOG.Four estates are already under offer and will shortly be acquiredby the fund.
The objective is to raise a total of €160mof equity and the fund will be open to European institutionalinvestors and pension schemes.
Acting as fund manager, Morley will market andmanage the fund as well as providing overall fund strategy. Morleyis a leading UK-based property fund manager with over €24bnin property funds under management. Morley now manages a wide rangeof specialist property funds, six of which are invested incontinental Europe, and has extensive experience in structuringfunds together with asset manager partners working to deliveroutperformance for investors.
As asset manager Teesland iOG will use its specialist Europeanindustrial property expertise to source and subsequently manage theproperties in the portfolio. Teesland iOG is a specialist assetmanager of multi-let industrial property across Europe and hasoffices in cities across the continent, including Warsaw.
Commenting on the fund, Ben Stirling, EuropeanProperty Fund Manager at Morley, said: "This is the latest in theseries of new funds we have launched since declaring our intentionto move into continental European property a year ago. We arealready active in central Europe on a number of fronts, as webelieve that the ongoing development of these markets since theirentry into the EU, together with strong projected GDP growth, givesopportunities to generate compelling returns for investors. Webelieve that the multi-let industrial sector is particularlyattractive as a result of its high yielding characteristics and theopportunity to add value through asset management initiatives.
"We are delighted to be working with Teesland iOG who areexcellent asset managers with unique skills in this sector, a solidtrack record on the Continent and a strong team dedicated tocentral Europe".
John Sims, from Teesland iOG, said: "This exciting business planfor central Europe follows the well established Teesland iOGtemplate of extensive local market research and stockidentification ahead of the acquisition programme.
"We have an extremely strong team for these territories and weare very pleased to be working with Morley again, whose clientswere amongst our core initial investors in the original iOG UKIndustrial Investment Funds."
For Further information pleasecontact:
Laura Cook, Corporate CommunicationsExecutive,
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 79203150
Notes to Editors:
Teesland plc is a leading independentEuropean property fund and asset manager which specialises in thecreation of indirect property vehicles and the provision ofspecialist property asset management skills. Teesland, which hasoffices across Europe, is capitalised about £95 million andoperates in three specific areas:
Property Fund Management
In October2004, Teesland acquired Property Fund Management plc for a totalconsideration of £34.47 million, providing it with a Europeanfootprint (offices in London, Edinburgh, Leeds, Birmingham, Paris,Amsterdam, Copenhagen, Warsaw and Berlin).
It has some £2.3 billion under management in 13 funds across theresidential, university housing, mixed commercial, retail andindustrial/business sectors.
Property Asset Management and PropertyManagement
Teesland undertakes asset management on behalfof clients where its responsibility is the improvement of theperformance and quality of properties owned by its funds or otherclients.
Development and ProjectManagement
Teesland also has a team which undertakes forfees the development and project management of major propertyschemes across the UK.
Morley Fund Management
Morley builds European Property Business
August 2004– Morley announces intention to invest £1 billion incontinental 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 owndistribution warehouse parks in Central Europe.
September 2004 – Morley appoints Julian Taylor as fundmanager from Heitman International.
November 2004 – Morley invests €100m in to thePillar European Retail Park Fund and takes up a strategicmanagement role for this Fund.
January 2005 – Morley launches the Aviva Central EuropeanProperty Fund, aimed at institutional investors looking forexposure to the Central European Property market.
May 2005 – Morley appointed as fund manager to the newlylaunched Tri Investments European Residential Property Fund.
July 2005 – Morley appoints Gilles Chow and Gil Bar asfund managers.
About Morley Fund Management
MorleyFund Management (‘Morley’) is a London based, assetmanagement business with over £134 billion (€198 bn)** undermanagement. The property team manages in excess of £17 billion(€24bn) of UK and European property assets, making Morley oneof the largest property fund manager in Europe. Winners of the highprofile Property Week Fund Manager of the Year Award 2004 and theUK Pensions Awards 2005 Property Fund Manager of the Year, the teamconsists of over 60 investment professionals and manages a range offunds on behalf of institutional, pension and retail clients.Morley has been at the forefront of innovation in property fundmanagement and has launched a range of specialist sector basedfunds, including: Igloo Regeneration Fund, Quercus HealthcareProperty, The Junction and The Mall.
**Not including mortgage assets, as at 30/06/05