Article date: 25 November 2004
Morley Fund Management (‘Morley’), one of theUK’s largest property fund managers, has launched the LimeProperty Fund – an institutional fund that focuses on longleases to quality tenants delivering secure income streams toinvestors. These income streams result in the fund aiming to enjoya lower risk profile than typical commercial propertyinvestment.
The £305m fund is biased to public sectorassets, with 74% of rentals derived from the sector. The remaining26% is from the retail, office and leisure sectors. The Fund has anaverage un-expired lease term of 24 years compared to an industryaverage of 11 years. It also has a target return of gilts plus 150basis points per annum over the medium to long term and has aforecast income return of 6% in year one, stabilising at 7%thereafter.
The Fund is currently being marketed to UK investors and newinvestors have recently acquired £47m of units.
Commenting on the launch of the Fund, PhilEllis, head of institutional property funds at Morley, said: "TheLime Property Fund has been designed to offer investors the benefitof a risk profile similar to gilts while enjoying target returns ofgilts plus an attractive margin. With investors constantlysearching for new sources of risk-adjusted returns, the Fund hasalready proved to be extremely popular for longer-terminstitutional investors."
Joel Lindsey, fund manager of the Lime Property Fund, said: "TheFund has a tailored portfolio of twenty properties and itsdistinctively high weighting to public sector assets provides long,secure income streams from a very good credit quality tenantbase.
As the Fund grows, it will be seeking assets with similarattributes to continue to deliver investors with solid dependablereturns. "
The Lime Property Fund is a Jersey Unit Trust, with a minimuminvestment of £1m.
For further information pleasecontact:
Fiona Baker, Head of CorporateCommunications 020 7809 8617
Laura Cook, Corporate Communications Executive 020 7809 8125
Notes to Editors
Morley Fund Management
- Morley Fund Management (‘Morley’) is anindependently managed, London based, asset management businesswith over £118 billion* under management (as at 30.09.04). Itactively manages a diverse range of asset classes and employs inthe region of 900 staff worldwide based in London, Singapore andan associate office in Boston**.
- Morley is a wholly owned subsidiary of the Aviva Group andmanages both institutional and retail funds under the Morleybrand. It also acts as investment manager for a range of retailinvestment funds, marketed in the UK by Norwich Union, andinternational funds marketed under the Aviva Funds brand.
*Not including mortgage assets
**Morley Fund Management International Limited, an Avivacompany
- Property Week Awards 2004 – Best Property FundManager
- Pensions Management Provider Awards 2003 – Best PropertyFund Manager
- Fund Manager of the Year - Pensions Week Awards 2002
- Specialist Manager of the Year - UK Pensions Awards 2002
- Insurance Fund Manager of the Year (awarded to Norwich Union)- Standard and Poor’s 2002
- Sustainable and Ethical Investment and Asset Management Award- Liveable City Awards 2002