Article date: 23 June 2008
Morley and DTZ Asset Management today announced they have successfully completed the first acquisition for their French Regional Property Fund, Hexagone - a portfolio of six French regional properties for €84 million.
Simultaneously, the Fund received its approval by the Luxembourg supervisory authority CSSF (Commission de Surveillance du Secteur Financier).
The portfolio of six high-quality property assets totals 41,900 square metres, with high occupancy levels and comprises: offices (71% of the portfolio) light industrial (19% of the portfolio) and warehouse space (10% of the portfolio).
Two of the assets are located in Lyon-St Pries and Lyon-Limonest, and the remaining four in the second ring around Paris in Elancourt, Eragny-sur-Oise, Lisses, and Combs-la-Ville.
Morley's Andreas von Gossler, Hexagone's fund manager, said: "This very attractive seed portfolio evidences Morley's and DTZ's ability to secure high-quality assets with attractive income yields and provides further clarity to investors on the launch of our fund."
Patrice Genre, managing director and founder of DTZ Asset Management said: "Despite having been executed in volatile market conditions and financing uncertainty, this first transaction for the Fund evidences the sustainability of our strategy to invest in the French regions that offer stability in terms of pricing and lease terms. We are confident for the near future to deliver on our investment and asset management mandate."
The vendor, a private fund, has been advised by King Sturge, while DTZ Asset Management and Morley were advised by Paul Hastings, Paris, Etude Allez & Associés and Moisan Boutin.
Key features of the fund:
- 10 year lifespan from launch.
- Capital growth with a targeted average internal rate of return of 10% per annum over the Fund life.
- High stable income with a target net distribution yield of between 5 and 6% per annum when fully invested.
- A diversified portfolio of high quality property assets. To date, sixassets have been secured for the Fund for EUR 84million (two in Lyon and four in the second ring around Paris).
- Highly experienced investment management and property acquisition teams.
For more information contact:
Telephone: 020 7809 6296
Notes to editors:
Hexagone is an unregulated collective investment scheme for the purpose of the UK Financial Services and Markets Act. This press release 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.
The content of this press release should not be viewed as an offer or solicitation to subscribe for shares or units of the fund by anyone in any jurisdiction in which such offer or solicitation is not lawful or in which the person making such offer or solicitation is not qualified to do so or to anyone to whom it is unlawful to make such offer or solicitation.
Where funds are invested in property, investors may not be able to switch or cash in their investment when they want because property in the fund may not always be readily saleable. If this is the case we may defer a request to switch or cash in units. It should also be borne in mind that the valuation of property is generally a matter of valuers' opinion rather than fact.
The value of an investment in the Fund and any income from it can go down as well as up. Investors may not get back the original amount invested.
A joint venture between Morley and DTZ Asset Management, Hexagone was established as a fund specialising in French regional property, to capitalise on investor demand for stable and high-quality French regional property assets.
Morley is the UK-based asset management business of Aviva plc. Firms within the Morley group of companies manage £157bn (€198bn) from offices around the world as at 31 March 2008.
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 £29bn (€37bn) of UK and European property assets.
On 28 February 2008, Aviva plc announced it was combining its asset management businesses to create a single, globally integrated asset manager to be known as Aviva Investors - to be launched formally in September 2008.
Aviva Investors will be the global asset management business of Aviva plc, the world's fifth-largest insurance group. Firms that will become Aviva Investors have £316 billion ($623 billion) of assets under management as at 28 February 2008 and significant growth potential.
Operating under a single brand with more than 1,300 employees in 15 countries across the UK, Europe, North America and Asia, and subject to regulatory approval, Aviva Investors will combine businesses in the UK (Morley Fund Management), North America (Aviva Capital Management, MFM International, Aviva Investment Canada), France (Aviva Gestion d'Actifs), Australia (Portfolio Partners), Poland (CUIM Polska), Ireland (Hibernian Investment Managers), Spain (Aviva Gestion SGIIC (Gestora)) and Romania (CertInvest) and work in partnership with Delta Lloyd Asset Management in the Netherlands.
Recent Morley awards
- The Morley G7 Fixed Income Fund (EUR) managed by Morley - winner of the Best Fixed Income Hedge Fund on a Risk Adjusted Basis at the Hedge Funds Review Eighth European Performance Awards 2008
- The Norwich Union Life and Pension fundmanaged by Morley - winner of the category 'Insurance Company Life Funds (£150m to £1.5bn, Dec 07)'at theIPD and Estates Gazette awards 2008
- The Holloways Properties Ltd fundmanaged by Morley - winner of the category 'Balanced Pooled Funds & Traditional Institutions (above £150m and below £500m, Dec 07)'atthe IPD and Estates Gazette awards 2008
- Morley - Money Market Fund category winner at Pension and Investment Provider awards 2008
- Property Manager of the Year, UK Pensions Awards 2007 and 2008
- Morley's G7 Fund awarded Fixed Income Hedge Fund of the Year, Eurohedge Awards 2006 and 2007
- 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
- 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
Building a global asset management capability is one of Aviva's strategic priorities and as such Aviva Investors will be a key component in Aviva's composite model of long-term savings, general insurance and asset management.
Aviva is the leading provider of life and pension products in Europe (including the UK) 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 £49.2 billion and funds under management of £364 billion at 31 December 2007.
The Aviva media centre at www.aviva.com/media includes images, company and product information and a news release archive.
DTZ Asset Management
DTZ Asset Management is one of Europe's leading real estate management companies. Founded in 1999 and headquartered in Paris, it is part of the principal pillar of the DTZ Holdings plc. The DTZ group is a global real estate adviser, with more than 12 000 people operating from 200 offices in 40 countries, listed in the London Stock Exchange.
DTZ Asset Management has experienced steady growth since its beginning and now employs around 100 people. With asset under management of € c.3 billion, DTZ Asset Management is active in asset management for third parties covering all Continental Europe with offices in France and Germany.
DTZ Asset Management's unique position is to provide its clients with an effective response to the rapidly changing real estate landscape where international investors are competing fiercely. DTZ Asset Management offers personalized services from strategy definition to sourcing to acquisitions with debt financing, and up to dispositions upon execution of agreed asset management strategies.