Knight Frank plans to rival Cordea Savills with a new standalone investment management business.
The new division, to be formed in the next few weeks, will focus on the creation of indirect property funds. It will aim to exploit Knight Frank’s existing private client base, including the wealthy investors who use its residential arm. It will also target charities, pension funds and institutions.
Former investment banker Rick Abbott has been recruited to run the team under partner Robert Hannington. Abbott built up AIM-listed IFA and mortgage advisory firm Parkrow Group, which was bought by Royal Liver Assurance Group in April 2003. He was previously at ABN AMRO, Deutsche Bank and Morgan Grenfell.
Abbott said Knight Frank wanted to capitalise on the government’s pension changes in April 2006, when the investments that a pension scheme can make will be widened to include residential property.
“This is preparation for A-Day in April 2006, when SIPPs will be able to invest more generally in property assets. We’re also doing this because property is becoming an increasingly important part of an individual’s investment portfolio,” he said.
“We are in the process of adding to the business and have identified a number of individuals with banking and fund management skills.”
Hannington said: “We anticipate that several others will be joining to facilitate this expansion.” He said the business would compete with the private banks and wealth managers, as well as Cordea Savills and LaSalle Investment Managers.
The name has yet to be finalised, but it is likely to be Knight Frank Investment Services. The business will be located at 10a Hanover Square, along with the existing Knight Frank Corporate Finance arm.
