New Star Asset Management is to launch a global commercial property portfolio next year, which will ...
New Star Asset Management is to launch a global commercial property portfolio next year, which will hold physical property. The group is already in the early stages of building a global property team, which will work alongside the UK property team headed by Roger Dossett.
New Star's global property fund is expected to be a unique fund in the market, given the complexities of establishing a global bricks-and-mortar property fund. It is likely both leveraged and unleveraged versions will be made available. The funds would initially be aimed at institutional investors, but a retail version is also likely.
The new portfolio will have broader international investor appeal than New Star's current UK property mutual fund, so should win new money. The UK Property fund was the group's best selling fund last year.
Meanwhile, Norwich Union is to launch an open-ended European Property fund by November. The fund, to be managed by Morley Fund Managers, will hold physical property, the lead manager being Ben Stirling.
The fund will be available though Norwich Union's onshore bond but will eventually be rolled out as a product similar to the Norwich UK Property fund, which is currently £3bn in size and taking in around £5m of new money daily.
The new fund will offer daily dealing and liquidity. Over the past year, the group has launched two institutional European property vehicles under Stirling and his team, with a German retail offering in partnership with SachsenFonds Asset Management, being the most recent.
Stirling said after strong performance from the UK commercial property sector and yield compression, there is likely to be demand from UK investors for property based further afield.
At the same time, Close Brothers Investments is launch-ing the second tranche of its Eastern European property feeder fund.
The Guernsey-listed product, managed by Mosaic, already has £45m of assets under management, but the company wishes to raise finance to target the office property sector in Poland, Hungary, the Baltic States, Romania and Bulgaria.
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