Article date: 11 December 2007
The Lime Property Fund, one of the UK's leading secure-income property funds1, has acquired a portfolio of student accommodation from Unite plc in Bath for £21.5 million. The acquisition reflects a 5.25% initial yield.
The portfolio comprises four separate properties, with over 400 bed spaces, let to the University of Bath on long leases. The properties are all subject to annual reviews to the Retail Prices Index (RPI).
Fund Manager Joel Lindsey said: "The current economic climate is driving demand for secure income streams. This purchase is inline with the fund's strategy of achieving secure income streams from strong covenants.
"The planning regime in Bath has created a shortfall in student accommodation, making the Unite deal particularly attractive given the high underlying value of the assets."
The Lime Property Fund has acquired over £115 million of properties this year including Audi UK's flagship Watford car showroom, the WMC/BBC concert hall development in Cardiff Bay and the new Carnival plc headquarters at West Quay Southampton. Lime has raised over £180 million this year and Morley is actively seeking further assets for the Fund.
The Bath portfolio was sold by King Sturge acting for The Unite Group.
1 Rated by IPD "Most secure income stream out of all pooled funds in the 2006 IPD Annual Universe"
For more information contact:
Telephone: 020 7809 8618
Notes to editors
This is an unregulated collective investment scheme for the purpose of the UK Financial Services and Markets Act. Information regarding the scheme is therefore intended only for those to whom the scheme can be promoted under the Act. As this is an unregulated collective investment scheme all or most of the protections provided by the UK regulatory system do not apply and compensation under the Financial Services Compensation Scheme will not be available. Information regarding the scheme should not be regarded as constituting an offer to invest.
The value of an investment in the Fund can go down as well as up and investors may not get back the original investment.
Morley is the UK-based asset management business of Aviva plc. Firms within the Morley group of companies manage £167bn (€240bn) from offices around the world as at 30 September 2007.
- Morley manages both institutional and retail funds. It also acts as investment manager for a range of retail investment funds, marketed in the UK under the Norwich Union brand and in Europe under the Morley name.
- The property team manages in excess of £31bn (€45bn) of UK and European property assets.
Best Property Manager - Financial News Excellence in Institutional Management Awards, Europe 2007
Morley ranks no.1 fund manager in the Thomson Extel SRI Survey, 2007
Property Manager of the Year, UK Pensions Awards 2007
Morley's G7 Fund awarded Fixed Income Hedge Fund of the Year, Eurohedge Awards 2006
Equity End User of the Year - Derivatives Week DEAL Awards 2006
Property Fund Manager of the Year, Pensions Management Awards 2006
Best Commitment to Raising Standards of Trustee Education, Engaged Investor Awards 2006
Property Fund Manager of the Year, Property Week Awards 2006
SRI Provider of the Year, Global Pensions 2006
Central European Property Awards 2005 - Outstanding Company of the Year & Investor of the Year
UK Pensions Awards 2005 - Property Manager of the Year
- Aviva is the leading provider of life and pensions to Europe with substantial positions in other markets around the world, making it the world's fifth largest insurance group based on gross worldwide premiums at 31 December 2006.
- Aviva's principal business activities are long-term savings, fund management and general insurance, with worldwide total sales of £41.5 billion and assets under management of £364 billion at 31 December 2006.
- The Aviva media centre at www.aviva.com/media includes images, company and product information and a news release archive.