Aviva Investors and BlackRock today announced the transfer of two real estate fund of funds from BlackRock Investment Management to Aviva Investors Global Services Limited (Aviva Investors).
The investment management function of the Luxembourg and Jersey domiciled funds will now be handled by the Real Estate Multi Manager team (REMM) within Aviva Investors. Upon completion of the transfer, on 24th November 2009, they will be renamed as follows:
- BlackRock European Property Fund of Funds will become Aviva Investors European Real Estate Fund of Funds*.
- BlackRock UK Property Fund of Funds will become Aviva Investors UK Real Estate Fund of Funds*.
The transfer follows John Gellatly joining Aviva Investors from BlackRock in September 2009. Mr Gellatly previously managed the funds at BlackRock and the transfer will help maintain continuity for unitholders.
Nick Mansley, Aviva Investors global head of REMM, said: “These funds are a significant addition to our existing segregated real estate multi-manager business, which is serviced by a team of around 20 people in London, Singapore and New York.
“The hiring of John Gellatly, who has extensive experience of the indirect real estate markets and particular knowledge of these funds, prompted the decision to bring them onboard. The addition of the funds is consistent with our overall plans to expand the business to offer clients pooled solutions alongside the existing segregated account service.
“This transaction also offers clear benefits for unit holders in the transferring funds, as they should benefit from both management continuity and the support of Aviva Investors substantial REMM resources in Europe.”
Aviva Investors has significant and long-standing expertise in real estate investment. It manages £21 billion in real estate assets globally (at 30 June 2009). In turn, the Real Estate Multi-Manager business, launched in 1997, manages £3.5 billion (at 30 June 2009) of indirect real estate on a global basis.
BlackRock’s real estate team manages US$19 billion globally as at 30 September 2009. Its direct property business in the UK has assets under management of $2bn as at 30 September and one of the largest and longest standing funds in its peer group.
* The funds are unregulated collective investment schemes for the purpose of UK Financial Services and Markets Act. This communication is therefore directed only at those to whom the schemes can be promoted under the Act. As the funds are unregulated collective investment schemes all or most of the protections provided by the UK regulatory system do not apply and compensation under the Financial Services Compensation Scheme will not be available. The information within this communication should not be regarded as constituting an offer to invest.
