Henderson Indirect Property Fund Europe reopens
The Henderson Indirect Property Fund Europe ("HIP" or the "Fund"), Henderson Global Investors' European property fund-of-funds, has reopened the calculation of its NAV pricing and is open for investment by institutional investors from 26 April 2010. HIP now has over €50 million to invest in new opportunities and has benefitted from the revocation of over 70% of the redemption requests on the Fund.
HIP is currently valued at €405 million of equity, and holds investments in 18 private institutional investment funds and one quoted business across Europe. The Fund has identified a strong pipeline of potential investment opportunities with a current preference for the German retail, French office and UK markets, which Henderson believes offer good income returns, liquidity and transparency as well as the potential for capital appreciation, given their current pricing levels.
The suspension was put in place at the beginning of 2009 after extensive consultation with investors, regulatory approval by the Luxembourg financial authorities and in accordance with the Fund's prospectus. The move was designed to protect the Fund's investors and provide future investors with a more equitable pricing structure. It was a response to the market's uncertainty at that time to value the Fund's units and the underlying real estate assets fairly and accurately as a result of the prevailing global economic crisis.
Commenting, Nick Evans, HIP's fund manager said: "Given the stabilisation and improvement in the European real estate market over the past few months, we now feel it is the right time to reopen HIP. We are particularly encouraged by the withdrawal of over 70% of redemption requests from our investors, a figure which may increase further.
"We see now as an optimum time to be investing again, as we can access what we believe to be high quality funds supported by prime real estate assets at significant discounts to NAV. We therefore expect to deploy the outstanding investor capital we have available of over €50 million in the next couple of months in order to take advantage of this and ahead of expected valuation uplifts .