New growth for Orchard
Orchard Funds Management has signed a joint venture deal with London-based property investment company Pensus.
The new company is to be called Pensus Funds Management and will be the vehicle that the Australian managers use to spearhead its international expansion into Europe.
Pensus was formed last year by three real estate executives — Hugh Elrington from CB Richard Ellis, Martin Betts from Halverton Real Estate Investment Management and Nick Bywater from DTZ.
The company has focused on property investments in northern European markets and particularly France, Germany, Holland and Belgium.
It has undertaken more than $100 million of property transactions in its first year of operations.
The joint venture with Orchard aims to build a property portfolio of $3.8 billion in the next five years sourced from all sectors of the commercial property market.
Orchard chief executive officer David Hinde said the difficulty of sourcing good property in Australia on good yields meant the fund manager had to look offshore.
“With property yields continuing to tighten in the Australian market, the time is right for Orchard to look offshore for investment opportunities,” he said.
“This relationship will ensure that we are able to draw on local knowledge and expertise when sourcing assets overseas, in particular, across Western Europe.”
Pensus partner Hugh Elrington said the joint venture with the Australian funds manager would bring benefits to the new company.
“This venture with Orchard will give us greater access to capital and management capabilities, which will enable us to develop into a major player in the European property funds management market,” he said.
“Pensus Funds Management will draw on the market knowledge, experience and success of both Orchard and Pensus to create opportunities for investors.”
Orchard currently has $3.7 billion of funds under management in more than 40 funds.
AUTHOR
Mike Taylor
Recommended for you
The Financial Advice Association Australia has implored advisers to reevaluate their exposure to AML/CTF obligations ahead of new reforms that will expand their compliance requirements significantly.
With UBS Asset Management chief executive, Alison Telfer, set to join Schroders, the firm has appointed a company veteran as her interim successor.
Compared to four years ago when the divide between boutique and large licensees were largely equal, adviser movements have seen this trend shift in light of new licensees commencing.
As ongoing market uncertainty sees advisers look beyond traditional equity exposure, Fidante has found adviser interest in small caps and emerging markets for portfolio returns has almost doubled since April.
