UK - Henderson Global Investors is the latest in a succession of managers to launch or close funds in the last two weeks targeting UK real estate.
The announcement that Henderson will begin marketing its Central London Office Fund II follows soon after the launch of F&C REIT's Devonshire UK Opportunity Fund, the arrival of three new vehicles from Apache Capital Partners, the closing of Mountgrange Investment Management's first fund, and the successful listing of Nick Leslau's new investment vehicle, Max Property Group.
Henderson is seeking to raise up to £200m (€228m) from UK and international institutional investors for a first close by the end of 2009 for its new seven-year, absolute return, closed-ended vehicle.
Henderson Central London Office Fund II will seek to capitalise on mispricing and the cyclicality of the central London office market, and is targeting an annualised internal rate of return of 12%.
Henderson says the fund will adopt a "prudent use of gearing", with a target maximum of 50%, but will have a "flexible investment strategy allowing the fund manager to identify the best value" in the market.
Apache Capital Partners, established in March by Paul Orchard-Lisle, former chairman of Slough Estates, is seeking to raise £200m-£300m for three new UK funds, focusing on infrastructure, commercial and central London residential assets, respectively.
All three vehicles are closed-ended and are aiming to deliver returns of 12-15% per annum.
Mountgrange Investment Management (MIM) has closed its Real Estate Opportunity Fund with a total of £300m of committed equity from more than 30 institutional investors around the world, including the US, Canada, the UK and continental Europe.
Committed investors include the Hospitals of Ontario Pension Plan Trust Fund, Arizona Public Safety Personnel Retirement System and a European fund of funds managed by Aberdeen Property Investors.
The successful closing of MIM's fund has surprised some in the industry given that two-three months ago founders Manish Chande and Martin Myers saw their other real estate business Mountgrange Capital go into administration.
"We have been hugely encouraged by the investor interest we have attracted for the fund," Chande said.
"Despite the extremely challenging conditions that markets around the world have recently experienced, the fund's investors have demonstrated support for the management team which MIM has assembled and in the opportunistic approach we have developed."