Sharia-compliant investment vehicle Al Manar has bought a portfolio of offices from Morley as part of its drive to build up a £250m UK fund.
The Islamic fund, managed by Kuwait Finance House, paid Morley Fund Management £56m for the three buildings.
Totalling 170,000 sq ft (15,793 sq m), they all come from CGNU-managed life funds and were sold as part of Morley’s strategic decision to offload more than £660m of property from its life funds.
The portfolio includes an office let to IG Energy Services in Bracknell sold for £21.6m, a yield of 7.5%; one in Leatherhead occupied by Logica CMG, bought for £16m, a 7.25% yield; and Apple Computers’ office at Stockley Park, bought for £18.4m, a 6.75% yield.
DTZ was instructed nine months ago to review a number of Morley’s buildings, and in November Standard Life bought two for £14m.
DTZ investment director John Knowles said: “Morley is being very proactive for a pension fund. The problem that most of the other funds face is that they have a lot of product they would like to sell but are finding it difficult because of asset allocation.”
Al Manar made its first UK acquisition in August, when it bought four distribution warehouses from Hermes for £47.25m, a 7.55% yield.
Mike Rowlands, partner at Al Manar’s retained adviser Strutt & Parker, said: “We’re looking to get cash returns now and then actively manage the portfolio over the next four to five years.”
Trowers & Hamlin set up the required Islamic finance structure for Al Manar. Berwin Leighton Paisner advised Morley.
References: EGi News 26/01/04
