Ignis restructure creates new property division

  Ignis Asset Management is restructuring its property business in the wake of the failed merger of F&C Commercial Property Trust and UK Commercial Property Trust.   The fund manager, which is owned by insurance giant Phoenix Group and has £69bn of assets under management, has set up a separate business unit for its property arm.   The Ignis Real Estate division will be headed by current head of property Gary Hutcheson and manage around £2.6bn of assets.   He will be joined by a chief operating officer, Steven Beveridge, and Robert Boag as senior investment director.   The restructuring has been in gestation since Chris Samuel joined Glasgow-based Ignis as chief executive of the combined asset management business late last year. It comes to fruition just months after the failed merger of FCPT and UKCPT, which would have created a listed company with a portfolio of around £1.6bn.   Ignis, which manages the £929m UKCPT, would have managed the combined company.   Hutcheson said: “Even without the FCPT and UKCPT merger we have added £800m of assets under management in the last 12 months. The new business unit model provides the real estate team with a degree of ownership of and responsibility for growth of the real estate business.”   He added that although the company had traditionally grown organically, all means of expansion would be considered including winning new mandates or potential mergers.   “There are other companies and structures we are looking at,” he said.   Ignis Real Estate will continue to manage around £1bn of mandates for parent company Phoenix Assurance.   It is understood that Phoenix is keen to increase its allocation to property and a merger would provide a simple way to achieve that.   Ignis Real Estate will also continue to manage the £700m open-ended Ignis UK Property Fund.   The restructuring of the property arm has involved a raft of appointments, including Alan Gardener, who has been recruited from Jones Lang LaSalle to lead the real estate research team.   Two asset managers, Daniel Baynes and Chris Brydie have also been appointed.   bridget.o’connell@estatesgazette.com   To access all EGi and EuroProperty news stories and commercial property data sign up for a free trial today, or visit the subscription options page to find out more.