AUSTRALIA - Henderson Global Investors has launched the Global Property Securities Fund, an unlisted wholesale fund for Australian investors which invests in listed property securities in major international markets.
The fund is being managed by Patrick Sumner, director of property, public markets (Europe), based in London, assisted by regional property securities teams located in Chicago, London and Sydney.
In launching the new fund, Henderson also announced a strategic partnership with K.G. Redding & Associates in Chicago, USA which will manage the North American component of the portfolio.
Sumner said: For Australian investors, an exposure to global property securities offers an opportunity to invest in a growing international market where the cash flow characteristics of property are expected to provide attractive long-term investment returns.
He noted that Australia is well known as one of the most highly securitised property markets in the world, with 55% of its institutional property market already listed.
In global terms, the Australian property market represents less than 2% of the global property market. Global property securities offer Australian investors an opportunity to diversify in terms of risk and return.
Another key feature of the new fund is the benchmark - the UBS Warburg Global Real Estate Investors Index - which excludes developers, contractors and other property related companies whose primary source of revenue is not rental income.
In addition, the property fund management joint venture between Henderson Global Investors and M.M. Warburg, known as Henderson Kapitalanlagegesellschaft für Immobilien mbH (KAG), has announced the launch of its first fund, Deutschland Fonds Nr.1.
Michael Howard is head of portfolio management at Warburg-Henderson KAG. The fund's strategy is to invest primarily in the office sector in the major German cities, actively seeking higher yielding opportunistic purchases and properties with value adding potential.
The properties will be sourced and managed by M.M. Warburg's property asset management subsidiary, HIH Hamburgische Immobilien Handlung.
The Dutch pension fund for the Metalworking and Related Technical Sectors, represented by Mn Services Investment Management, is lead and seed investor in the fund with an equity commitment of E60m. The fund is expected to grow to around E300m in equity commitments.
The Warburg-Henderson partnership is currently developing core products on both a pan-European and country basis, which are planned for launch early in 2003.
The KAG is registered under German law and holds investment company status.
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