Article date: 8 August 2006
Morley Fund Management, Europe's largest property fund manager*,today announced that its Central European Industrial Fund (CEIF)has closed oversubscribed.
Ben Stirling, fund manager who heads up the European property teamat Morley, said that Morley had been forced to turn some investorsaway because the demand was so high.
“We are increasingly being asked by UK and European clientsto invest in European real estate. Return prospects have started tolook more favourable in continental Europe than the UK, and alliedto the strong diversification characteristics of a continentalEuropean property exposure we are seeing particular demand from UKinvestors at present."
CEIF which was launched in August last year is a joint venturebetween Morley and Teesland iOG, the listed property company. Thefund will invest €500m in Central European multi-letindustrial estates over three years, with approximately €140malready invested in 13 estates across Poland, Hungary, CzechRepublic and Romania.
CEIF aims to achieve a distribution yield of more than 9.5% a yearand an internal rate of return (IRR) of over 12% per annum.
CEIF has €200m in total equity. The final closing raised€147m from nine investors including two Dutch pension funds,PGGM and TKP, and UK institutions including ING, Henderson andSchroders. Gil Bar of Morley is responsible for fund management ofCEIF while Teesland iOG is responsible for asset management.
Morley revealed plans to invest £1 billion in continental Europeanproperty two years ago. Since then it has invested £1.2 billion andnow has a team of 10 people dedicated to European property.
Last week Morley launched the German Retail Investment PropertyFund (GRIP).
*Oxford Property Consultants, 31 December 2005.Based on funds under management in Europe (inc UK).
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Notes to editors:
Morley Fund Management
- 2006, Property Fund Managerof the Year, Pensions Management Awards
- 2006, Property Fund Manager of the Year, Property WeekAwards
- 2006, Outstanding Company of the Year Award, CEE Real EstateQuality Awards
- 2006, Investor of the Year Award, CEE Real Estate QualityAwards
- 2005, UK Pensions Awards Property Manager of theYear
- 2004, Property Week Fund Manager of the Year Award
- 2003, Property Fund Manager of the Year, Pensions ManagementAwards
The Morley property team consists of over 70 investmentprofessionals and manages a range of funds on behalf ofinstitutional, pension and retail clients. Morley has been at the forefront of innovation inproperty fund management and has launched eleven specialist sectorbased funds with partners, including: Igloo Regeneration Fund,Quercus Healthcare Property, The Junction and The Mall.
Further information about Morley Fund Management can be found atwww.morleyfm.com or www.morleyproperty.com