Cordea Savills and AMP Capital Investors, a part of AMP, which is Australia's leading financial institution, have established a strategic alliance for property fund management. As part of this alliance Cordea Savills has been appointed as the European portfolio manager for a new global property fund. This fund, the AMP Capital Global Direct Property Fund, was launched this month for Australian and international institutional investors, reflecting their growing appetite for investing offshore.
Cordea Savills will source and manage assets as a discrete European portfolio. The fund enables investors not only to access commercial and residential property in Europe, but also in North America and Asia.
Justin O'Connor comments: "Cordea Savills' track record and the growing reputation of its team for local market expertise were cited as key factors in the selection by AMP. The European portfolio is estimated to grow to 500 million within 3 to 4 years."
The AMP Capital Global Direct Property Fund broadens the investment choice for Australian institutional investors. They are increasingly seeking property investment beyond their domestic real estate market, which represents just 2% of the global property market. AMP Capital Investors research found that while demand for property in Australia is forecast to grow at an annual rate of 8%, the supply of domestic property is expected to grow at only 3% per year. This is one of the first Australian property funds that will make direct property investments in the US, Europe and Asia.
The fund is open ended and will have a core, core plus investment style and is currently acquiring seed assets.
Source: Cordea Savills