EUROPE - BlackRock has launched the Merrill Lynch (ML) European Property Fund of Funds, which will invest in unlisted diversified property vehicles across Europe.
The fund will be an open ended euro denominated vehicle, and will be managed by Matthew Ryall.
Ryall said the fund's initial investment focus would be in those property markets which BlackRock saw as being relatively undervalued and with good growth prospects going forward.
"These include the Nordic countries, provincial France, Western Germany and parts of Southern Europe," said Ryall.
"We will be limiting our exposure to many parts of Central Eastern Europe, where we believe that current pricing levels are not supported by growth prospects."
BlackRock claimed cross border investing had become increasingly popular among investors as they look to invest outside their own market and increase the size of their property exposure.
In assessing the suitability of individual funds, BlackRock said strict qualitative selection criteria would be adopted, which included ratings of management teams, investment processes, corporate governance and the quality of underlying assets.
According to BlackRock, the FoF approach was ideal because direct access to the European property market could be difficult given its size and fragmented nature.
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