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Cowell takes aAim at rock legends

News

Julia Cahill

08 January 2005

Elton John, Rod Stewart and David Bowie lined up for £400m private investment fund

Sir Elton John is the latest celebrity to invest in commercial property, signing up for a new fund aimed at high-profile private investors.

The £400m fund will be launched by property syndicator Active Asset Investment Management, which has teamed up with investor Nicholas Cowell, the brother of X Factor and Pop Idol judge Simon Cowell.

After final closing, they expect the fund to buy up to £400m of property, mostly in the UK.

Nicholas Cowell, who runs London-based investment specialist Abbey Road Estates, confirmed that he was in talks with Sir Elton’s business team. Rod Stewart, David Bowie and Simon Cowell were also considering investing, aAim said.

Speaking from the Sandy Lane resort in Barbados, Cowell said: “I am impressed by aAim’s ability to deliver well-structured deals, and it was this track record that gave me the faith to offer this fund to people I have known for years.”

aAim’s existing investors include Manchester United manager Sir Alex Ferguson. It has bought £420m of property since it was founded by ex-Nomura director Mark Tagliaferri and property entrepreneurs Robert Whitton and Robert Kanerick in 2003.

The new fund, Active Property Fund One, will be registered as a Jersey expert trust — a relatively new collective investment structure designed to cater to high-net-worth and sophisticated investors.

Investors will receive an annual income of 6% and an additional return of around 15-20% after eight years. Cowell and aAim plan to spend the first year investing the fund, followed by a five-year “churn” period and a two-year disposal period.

aAim chief executive Robert Whitton said: “Interest has been extremely encouraging. This is a market we have already catered to very successfully, and Nicholas has given us huge added impetus.”

Ahouvi drives deal

In further evidence of private investor appetite for property, a consortium headed by Israeli investor Igal Ahouvi has bought 85 car showrooms across the UK for £280m, a 7.5% yield.

Volkswagen sold the showrooms to Royal Bank of Scotland Structured Finance in May and leased them back to VW. All the properties are leased for 25 years expiring in 2028. Barrs Freer-Smith advised the consortium.

In September 2003, Ahouvi led the consortium that bought 100 NCP car parks from RBS for £609m.

Elton John, Rod Stewart and David Bowie lined up for £400m private investment fund Sir Elton John is the latest celebrity to invest in commercial property, signing up for a new fund aimed at high-profile private investors. The £400m fund will be launched by property syndicator Active Asset Investment Management, which has teamed up with investor Nicholas Cowell, the brother of X Factor and Pop Idol judge Simon Cowell. After final closing, they expect the fund to buy up to £400m of property, mostly in the UK. Nicholas Cowell, who runs London-based investment specialist Abbey Road Estates, confirmed that he was in talks with Sir Elton’s business team. Rod Stewart, David Bowie and Simon Cowell were also considering investing, aAim said. Speaking from the Sandy Lane resort in Barbados, Cowell said: “I am impressed by aAim’s ability to deliver well-structured deals, and it was this track record that gave me the faith to offer this fund to people I have known for years.” aAim’s existing investors include Manchester United manager Sir Alex Ferguson. It has bought £420m of property since it was founded by ex-Nomura director Mark Tagliaferri and property entrepreneurs Robert Whitton and Robert Kanerick in 2003. The new fund, Active Property Fund One, will be registered as a Jersey expert trust — a relatively new collective investment structure designed to cater to high-net-worth and sophisticated investors. Investors will receive an annual income of 6% and an additional return of around 15-20% after eight years. Cowell and aAim plan to spend the first year investing the fund, followed by a five-year “churn” period and a two-year disposal period. aAim chief executive Robert Whitton said: “Interest has been extremely encouraging. This is a market we have already catered to very successfully, and Nicholas has given us huge added impetus.” Ahouvi drives deal In further evidence of private investor appetite for property, a consortium headed by Israeli investor Igal Ahouvi has bought 85 car showrooms across the UK for £280m, a 7.5% yield. Volkswagen sold the showrooms to Royal Bank of Scotland Structured Finance in May and leased them back to VW. All the properties are leased for 25 years expiring in 2028. Barrs Freer-Smith advised the consortium. In September 2003, Ahouvi led the consortium that bought 100 NCP car parks from RBS for £609m.