26 May 2009 Henderson launches Central London Office Fund II - New by etssetcf

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26 May 2009 Henderson launches Central London Office Fund II - New

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									                                                                                                 26 May 2009

                          Henderson launches Central London Office Fund II

     - New fund to take advantage of market cycles and mispricing in London’s office market -

Independent asset manager, Henderson Global Investors, has launched the Henderson Central
London Office Fund II (“CLOF II”), a seven year absolute return, closed ended fund designed to
capitalise on the cyclicality of the central London office market, and the emergence of interesting
opportunities into a limited capital market. The fund will be marketed to UK and overseas institutional
investors and has a target annualised IRR of 12 per cent per annum over the life of the fund.


Henderson is initially seeking to raise up to £200 million for a first close by the end of 2009. The
overall target equity raise is up to £500 million. However, the manager intends to keep both the
commitment and investment periods short, to protect returns.

The Fund will be managed by Clive Castle and Nick Deacon. Together, Clive and Nick have 36 years
of experience in the central London office market and have completed over £2 billion of transactions
while at Henderson.

Key points include:


    •   An absolute return target with performance fees based on realised returns. This aim is to
        provide managers with an incentive to dispose of assets at the right time;
    •   A relatively short-term fund life of 7 years, with the intention for capital to start being returned
                               th    th
        to investors from the 4 or 5 year (where advantageous to investors);
    •   Prudent use of gearing, with a target maximum of 50%;
    •   A flexible investment strategy allowing the fund manager to identify the best value in the
        central London office market.

Clive Castle says, “The central London office market is one of the most liquid, transparent and
exciting property markets worldwide. We are already beginning to see interesting assets at attractive
prices, and aim to be in a position to invest ahead of the general market re-pricing expected from 2010
into 2011. Everything in the strategy and structure of the fund has been designed to capture the
benefits offered by this unique market and its cyclicality and to release them to investors.”

CLOF II will focus on quality assets in good locations, with medium term secure income. The manager
will favour multi-let properties and intends for the fund to be well protected from occupier risk in the
short-term, but with potential for asset management thereafter. This will include management of
tenants and leases, and refurbishment (it is unlikely that there will be any exposure to development).
There will also be scope to release value from leasehold titles.
Mike Sales, director of property investment at Henderson adds, “With the launch of CLOF II we are
offering investors access to the right market, at the right time, with an expert team. We believe that
there will be a finite opportunity to invest in assets of this quality, in this world class location, at
historically attractive prices, while capital markets are restricted. For overseas investors there is the
additional benefit of the currency position. There is a rare chance for overseas investors to enter the
central London office market at extremely good value.

Our specialist central London team are uniquely positioned to capitalise on this opportunity for
investors. We are acting now to raise CLOF II so that we are ready to invest when the time is right.”

The launch of the fund follows the success of the Henderson Central London Office Fund (CLOF),
Henderson’s first fund targeted at London offices, which was launched in 2004 with an objective of out
performing the central London offices element of the IPD’s UK Annual Index. The Fund runs until
2011, but a number of properties were sold in 2007 and 2008 to crystalise their performance, and
£100 million of capital was returned to investors in December 2008. As at March 2009, CLOF was
valued at £507 million and has a good track record of out performance against the benchmark.



                                                  -ends-

Press enquiries
Richard Acworth                                                   020 7818 4222
Henderson Press Office                                            pressoffice@henderson.com

Richard Sunderland / Rachel Drysdale / Claudia Robinson           020 7831 3113
FD                                                                Henderson@fd.com

Notes to editors
Henderson Property
Henderson is one of Europe’s leading property asset managers with over £9.4 billion (as at 31 March
2009) of direct property funds under management managed across Europe and Asia. The property
team comprises of over 180 staff based across Europe. The company has offices in London, Frankfurt,
Milan, Paris, Amsterdam, Vienna, Luxembourg, Madrid and Singapore. It also has additional asset
management capabilities through a joint venture partner in Hamburg.

The property business manages pooled and segregated accounts which invest in properties offering
core and value-added returns. In addition to investing across all commercial sectors, the property
business also manages funds with sector specialist and/or regional themes. Henderson’s property
business includes a market-leading research capability. Twice yearly the in-house research team
carries out analysis and forecasts returns for over 800 local markets across Europe.

Further information: www.henderson.com/property

About Henderson Global Investors
Established in 1934, Henderson Global Investors is a leading independent global asset management
firm. The company provides its institutional, retail and high net-worth clients with access to skilled
investment professionals representing a broad range of asset classes, including equities, fixed
income, property and private capital. Headquartered in London, Henderson is one of Europe’s largest
investment managers, with £43.4 billion assets under management (as at 31 March 2009) and
employs around 840 people world-wide.

On 09 April 2009, Henderson Group (the parent company of Henderson Global Investors), completed
the acquisition of UK based New Star Asset Management Group PLC. As of 27 March New Star
assets under management were £8.6 billion.

								
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