Morley and Warner Estates acquire £120m of regional offices

Article date: 29 November 2005

Morley Fund Management and Warner Estate Holdings PLC have todayexchanged contracts to acquire a £120m office portfolio from theCo-operative Insurance Society (CIS) for the newly created ApiaRegional Office Fund. 

This transaction reflects a net initial yield of 6.7% and anominal equivalent yield of 6.9%. Completion is scheduled for 21December 2005. The £120m office portfolio is part of the PrincipalPortfolio being purchased from CIS for £159m, the balance of theportfolio, including the Royals Shopping Centre, Southend, is beingacquired for the Warner Estate’s Core portfolio along with aleasehold liability portfolio of 105 ex-CIS offices.

The Apia Fund, which was launched on 7 June 2005, has anexisting property portfolio of £261m assets under management, andis one of 11 specialist property funds managed by Morley. TheFund’s investment focus is on large office properties inmajor regional cities throughout the UK and is open toinstitutional investment via cash or by contributing suitableproperty assets.

Sian Humphrey, fund manager for the Apia Regional Office Fund atMorley Fund Management, said: “The Apia Fund was onlylaunched in June and so this acquisition is a great step towardachieving our goal of growing the fund to £750m. The portfolio wehave acquired is in line with the fund's investment focus and oncompletion we will own 20 offices bringing the total assets to£380m. The fund offers investors the opportunity of adiversified exposure to regional offices through an activelymanaged portfolio of properties in major regionalcentres.”

The portfolio comprises the following seven officeinvestments
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 £17 billion ofUK and European property assets, making Morley one of the largestproperty fund managers in Europe. The team consists of over 70investment professionals and manages a range of funds, includingsegregated and pooled pension funds as well as a retail unittrust.


For further information pleasecontact:
Fiona Baker
Morley Fund Management
07736 883832

The Apia Regional Office Fund is an English Limited Partnershipand 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 £134 billion (€198 bn)**under management. The property team manages in excess of £17billion (€24bn) of UK and European property assets, makingMorley one of the largest property fund manager in Europe. Winnersof the high profile Property Week Fund Manager of the Year Award2004 and the UK Pensions Awards 2005 Property Fund Manager of theYear, the team consists of over 70 investment professionals andmanages a range of funds on behalf of institutional, pension andretail clients. Morley has been at the forefront of innovation inproperty fund management and has launched a range of specialistsector based funds, including: Igloo Regeneration Fund, QuercusHealthcare Property, The Junction and The Mall. 

**Not including mortgage assets, as at 30/06/05

Further information can be found at

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