Santander appoints Knight Frank and Gresham Down to expand fund

  Banco Santander subsidiary Luresa Inmobilaria is aiming to triple the size of its listed property fund.   Spain’s largest bank has appointed Knight Frank Investors and property adviser Gresham Down to help it expand the fund’s assets under management from £65m to more than £150m.   The push to expand the fund comes as it changes its name from GlanEuro Property Fund to Luri 5 UK Property Fund.   The fund, which is listed on the Dublin Stock Exchange, owns 21 secondary properties – mostly office and industrial assets – across the UK.   KFI and Gresham Down are to put together a plan for the portfolio that is expected to include an asset management strategy to upgrade the current portfolio and facilitate potential sales of its current investments.   Sources said the expansion strategy could see more shares issued in the vehicle.   Stephen Down of Gresham Down said: “We have been focusing on expanding the asset management side of Gresham Down for a while now to complement the investment advisory service we provide to clients and we are delighted to be appointed by Santander and Lauresa to provide strategic asset management advice on this significant UK fund.”   John Styles, head of KFI, added: “We are excited to be working with a client such as this. We will be using the full resources of the Knight Frank UK network to manage the assets and grow the portfolio as the fund develops.”   Santander is keen to promote the open-ended fund, which was set up more than four years ago, to its private investor base as a UK property investment vehicle.   KFI and Gresham Down beat competition from King Sturge and CB Richard Ellis to win the instruction.   The mandate was held previously by Cardales, which was bought by Deutsche Bank two years ago.   KFI, which emerged from Knight Frank’s previous fund management arm, Rutley Capital Partners, has some £500m of funds under management.   bridget.occonnell@estatesgazette.com   To access all EGi news stories and commercial property data sign up for a free trial today, or visit the subscription options page to find out more.