1 February 2008
- Fifteen Norwegian properties added to portfolio
- Norway offers attractive initial yield of around 7.5%
Close Investments is delighted to announce the purchase of a 15 property Norwegian portfolio to add to the European Property Investment Portfolio (“Europip”).
The Fund is available to both retail and institutional investors and offers both sterling and euro share classes.
Europip invests in commercial property in mainland Europe, including Scandinavia, and it aims to offer investors a net annualised total return of 9%*. The Fund can invest in direct property as well as select open and closed ended European property funds.
Martin Towns, Close Investments Property, said:
“We are delighted to have signed contracts for the purchase of an €85 million portfolio of office & industrial properties in Norway, adding to the existing allocation of properties within Europip. Norway has a fast growing economy, and rental growth looks set to outperform the remainder of Europe; in addition this portfolio offers lots of scope for active asset management. We invested at an attractive initial yield of around 7.5%, with a longer average lease length, of around 7 years remaining, compared to a UK average of around 5 years. In addition to this purchase, we continue to seek investment opportunities throughout the region. This purchase gives momentum to our European investment strategy and demonstrates that it is possible to seek out assets that should deliver excellent returns in the future. ”
* No assurance or guarantee can be given that targeted returns will be achieved.
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Jpeg photograph available on request
For further comment, please contact:
Karen Wagg Polhill Communications 020 7655 0540
Hannah Parkinson Close Investments Limited 020 7426 4170
NOTES TO EDITORS
Fund Details:
- Target return 9% pa (total return, net, annualised)
- Invests in European Commercial Property
- Retail & Institutional share classes
- Sterling & Euro share classes
- Close Investments Property team manage £802m property assets (31 December 2007)
- Open ended investment company
- Domiciled Isle of Man
- Monthly pricing and dealing
- Launch date: 23 October 2007
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Initial Charge
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5%
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Annual Charge
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1.75% of net assets
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Min investment
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£2,000 or €3,000
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Adviser Commission
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3% initial, 0.5% trail available
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Performance fees
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20% for perf over 10% IRR
35% for perf over 15% IRR
(3 year rolling average)
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- Institutional share class:
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Initial Charge
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0%
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Annual Charge
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1.00% of net assets
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Min investment
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£200,000 or €300,000
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|
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The size of the European commercial property market (excluding Central & Eastern Europe) is around €840 billion, which compares with around €520 billion for the UK market (source IPD 2006). The larger European market offers a means of diversifying away from the risks of UK property, and offers the opportunity to take advantage of the different cycles and trends within each country. Active managers, like the Close Investments property team, have greater scope to offer enhanced returns through portfolio allocation, across assets, sectors and regions.
Close Investments provides a broad spectrum of innovative products for institutional, mutual funds and private investors including property, tax mitigation products, manager of managers, specialist fund management (such as fixed income and the Alternative Investment Market) and structured products. Close Investments manages assets of £4bn^. Close Investments Limited and Close Multi Manager Limited are members of the Close Investments Group and each uses the trading name Close Investments. The other members of the Close Investments Group are Close Teams Limited, Fortune Asset Management Limited, and Close Fund Management Limited. Close Investments Limited is authorised and regulated by the Financial Services Authority.
Close Investments products include:
· open & closed ended property funds
· open ended investment companies
· inheritance tax mitigation products
· capital gains tax and income tax mitigation products
· generalist and AIM Venture Capital Trusts
· UK smaller company and AIM investments
· fixed income funds
· structured products
Close Investments is a subsidiary of Close Brothers Group plc.
Close Brothers Group plc is an independent investment banking group which was founded in the City of London in 1878 and is listed on the London Stock Exchange. The Group employs over 2,500 staff and manages assets of £9.1bn*. Its main activities comprise asset management, corporate finance, market making and banking, including asset financing. The Group has established a strong reputation for independence and integrity. Its growth is largely attributable to an entrepreneurial but conservative approach and it has achieved market leadership in several specialist areas
^As at end July 07 (Source Close Investments)
*As at end July 07 (Source Close Brothers Group plc)