CBRE Global Investors announces the merger of CBRE UK Property Fund (UKPF) with Electricity Supply Pension Scheme (ESPS) UK property portfolio to create a £1.47 billion fund.
The fund is authorised by the Financial Conduct Authority (FCA) and is operated as a Property Authorised Investment Fund (PAIF).
CBRE Global Investors has been the investment manager of the ESPS’ direct UK property portfolio since 2006. Electricity Pension Trustee Limited (EPTL), the scheme trustee of ESPS, had for some time been considering the long term options for its UK property portfolio. EPTL’s investments advisors, Aon Hewitt, put forward a number of options and, after consideration, it was decided to merge the UK property portfolio with an existing core balanced fund. Following a process run by Aon Hewitt, the CBRE UK Property Fund, managed by CBRE Global Investors, was selected.
Michael Ness, Head of UK for CBRE Global Investors commented:
”We are delighted that ESPS, as a highly valued separate account client, chose to continue their relationship with CBRE Global Investors. The fund is well positioned to continue delivering out-performance for all our investors, with a first rate team and simplified structure.
This merger is indicative of a theme that CBRE Global Investors are seeing across a number of our domestic and global investors – an increasing desire for scale and simplicity”.
Hannah Marshall, Fund Manager of the newly-formed PAIF, commented: “This is a very exciting time, the merger establishes the PAIF as one of the major players in the UK market.
The ESPS portfolio was complementary to the existing fund and had a good performance track record.
Our investors will now be able to benefit from the PAIF structure which is more flexible and efficient. We are also able to offer overall lower fee charges and a larger diversified investor base. With the increased size of the fund, we now have the ability to further exploit economies of scale.
With all these changes in place, we firmly believe that the fund is very competitive and will meet our existing investor requirements as well as be very attractive to new investors.”
Aon Hewitt, PWC, Eversheds and Mayer Brown acted for ESPS, BLP and Nabarro for the CBRE UK Property Fund.
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“This material may not be distributed in any jurisdiction in which it is illegal to do so. CBRE UK Property PAIF is authorised by the Financial Conduct Authority (FCA). This Fund is for professional or qualifying investors who are eligible to invest in a Qualifying Investor Scheme (QIS) within the meaning of the FCA Rules only. It is not intended to be distributed or passed on, directly or indirectly, to any other class of persons. It is not available to ordinary retail investors. CBRE Global Investors (UK Funds) Limited obtained its Alternative Investment Fund Managers Directive (AIFMD) licence from the FCA on 15 July 2014 and is the alternative investment fund manager (AIFM) for the CBRE UK Property PAIF. The FCA granted CBRE Global Investors (UK Funds) Limited an AIFMD marketing passport to market the CBRE UK Property PAIF to professional investors in the following EEA countries: Denmark, Finland, France, Germany, Italy, Luxembourg, Netherlands, Norway, Sweden & the United Kingdom. Issued and approved by CBRE Global Investors (UK Funds) Limited, which is authorised and regulated by the FCA in the United Kingdom”.
This release is not an offer of securities for sale in the United States. Securities may not be offered or sold in the United States absent registration or an exemption from registration. Any public offering of securities to be made in the United States will be made by means of a prospectus that may be obtained from CBRE Global Investors (UK Funds) Ltd, which will contain detailed information about the fund as sell as the financial statements.
About CBRE Global Investors
CBRE Global Investors is a global real estate investment management firm with $88.6 billion in assets under management* as of June 30, 2016. 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 more than 70,000 employees in more than 400 offices (excluding affiliates) worldwide. For more information about CBRE Global Investors, please visit www.cbreglobalinvestors.com