LONDON, 27 January 2014 – CBRE Global Investors, the leading investment management company, announces the merger of CBRE Lionbrook Property Fund and CBRE UK Property Income Fund. The merged fund has been re-named the CBRE UK Property Fund.
CBRE Global Investors started negotiations with the investors of Lionbrook and the Income Fund last year to merge the funds. The merged GAV £530 million pooled fund will have a balance of assets and geographical diversification, retaining a bias towards London and the South East. The deal is expected to enhance income levels, asset diversification and add further opportunities for individual active management projects, all of which are projected to contribute to outperformance. The fund will have overweight exposure to the industrial sector, which is in-line with the manager’s focus towards income out-performance.
With the larger fund, investors from both funds will benefit from cost efficiencies arising from the improved quantum and the Lionbrook investors also benefit from:
- Higher distribution
- Greater asset diversification
- A strategic move towards industrials and good secondary assets
- A wider investor base
For Income Fund investors, the new CBRE UK Property Fund offers:
- Significantly improved liquidity,
- Greater asset diversification
- A more balanced exposure to prime real estate
- Reduced level of gearing
The fund manager for CBRE UK Property Fund is Matt Mcdonald, formerly Lionbrook fund manager.
Michael Ness, UK Head, CBRE Global Investors said: ”We have been in negotiations for some time with investors to ensure that both parties felt that this merger was the right thing for them. We are very pleased that they have seen the benefits of a larger fund and that it will be advantageous to both sides. We now are looking forward to building on the recent success to grow this fund.
The CBRE UK Property Fund has an experienced team with a good track record, and we are confident that the merged Fund will continue to deliver the attractive returns that our investors require.”
The CBRE Lionbrook Property Fund outperformed it’s benchmark over the 5 years to December 2013, and delivered a total return of 5.5% in the quarter to December 2013.
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About CBRE Global Investors
CBRE Global Investors is a global real estate investment management firm with $87.6 billion in assets under management* as of September 30, 2013. The firm sponsors investment programs across the risk/return spectrum for investors worldwide.
CBRE Global Investors is an independently operated affiliate of CBRE Group, Inc. (NYSE:CBG). It harnesses the research, investment sourcing and other resources of the world’s premier, full-service commercial real estate services and investment company for the benefit of its investors. CBRE Group, Inc. has approximately 37,000 employees (excluding affiliates) in more than 300 offices (excluding affiliates) worldwide. For more information about CBRE Global Investors, please visit www.cbreglobalinvestors.com.
Approved by CBRE Global Investors (UK Funds) Ltd which is authorised and regulated by The Financial Conduct Authority.
Past performance is no guarantee to future performance. The value of investments can go down as well as up and an investor may not get back the amount he invested.
* Assets under management (AUM) refers to fair market value of real estate-related assets with respect to which CBRE Global Investors provides, on a global basis, oversight, investment management services and other advice, and which generally consist of properties and real estate-related loans; securities portfolios; and investments in operating companies, joint ventures and in private real estate funds under its fund of funds program. This AUM is intended principally to reflect the extent of CBRE Global Investors’ presence in the global real estate market, and its calculation of AUM may differ from the calculations of other asset managers.
