EUROPE - Henderson Global Investors will this week reopen its €405m institutional pan-European real estate fund of funds after 76% of investors agreed to revoke their redemptions.
Richard Acworth, a spokesman for the fund manager, cited a market turnaround since the fund suspended redemptions early in 2009.
"Valuations are more compelling and there are opportunities out there," he said. "The metrics are all pointing in the right direction."
Asked how many more investors he expected to revoke their redemptions, fund manager Nick Evans said: "That's the million-dollar question. It could happen that 100% will revoke but we expect between 10—15% more. That would get it up to 90%."
He added: "One investor, a UK pension fund, has certain compliance restrictions, namely a 50% cap on its European allocation. They're looking to partially redeem."
Evans cited as reasons for the decision a management team that hasn't changed and a proactive approach to sub-funds. "We've acted to protect long-term investors in the fund and to give a fair, accurate price," he said. "It's nice to be in a position where investors have ticked a box and placed their confidence in us. Now we need to deliver on their expectations."
With a war chest of €50m, the fund, which invests in 18 non-listed funds and one listed company, is in buy-mode. Targets include German retail and French office - in both cases, prime, long-term, secure-income assets.
"The fund currently has no UK exposure," said Evans. "Current sentiment is that UK pricing is running away from us. The rebound in pricing has created a short-term rally. Unless we can access certain funds and assets, we're more likely to look in Germany and France."
Pension funds including Hoogovens and ABP, and a number of Australian superannuation funds, this week upped their shareholding in the fund management group via AMP. Collectively, they make up one of the fund manager's top 20 shareholders.
