News

Kenmore pushes into Europe

News

Robert Gibson

13 August 2005

Two new partnerships planned as lower costs and higher yields turn attention to Continent

Seven months into Pauline Bradley’s reign as chief executive, Kenmore Property Group is ready for a major European investment drive.

Kenmore – which presently co-invests in five partnerships – is planning another two to invest in Europe, which should be launched by late autumn.

The focus has shifted from the UK because of the cheaper cost of funds and higher yields on the Continent.

A third of Kenmore’s business is now tied up in office, warehouse and retail investments in France, Belgium and Scandinavia. Further expansion is planned for the Paris office, which opened in July 2004, building on its existing portfolio of ¤150m created in partnership with HBOS.

Bradley said Kenmore – whose portfolio is 60% industrial, with offices marginally the next largest sector, followed by retail – would stick to western Europe. “In Old Europe the market is more transparent, there is more stability and risks are better understood. We will look at Germany, but only on an opportunistic basis, as its economy is lagging a long way behind its peers.”

Meanwhile, as a number of Kenmore’s key staff have turned their attention to the Continent, the need has arisen for a dedicated team of asset managers in the UK. The company is recruiting five new senior staff, taking the Kenmore team up to 45. The UK-based positions cover strategic asset managers and investment and development surveyors.

Kenmore is also keeping a weather eye on the latest government thinking. “Any property company would be naïve not to have real estate investment trusts on the agenda,” Bradley said.

But the company is keeping its options open. Kenmore’s investors have historically been institutional, although Bradley recognises that the next great pool of money will come from retail investors.

Bringing finance finesse to Kenmore

Pauline Bradley, a widely respected financier who headed the joint ventures team at Bank of Scotland, joined John Kennedy’s company in January. Her appointment as chief executive was widely heralded as bringing a new dynamism to the co-investor and fund manager.

Former Bank of Scotland financier Bradley said her first six months at the Edinburgh-based company, which owns or manages more than £700m of property, had been spent on internal restructuring, but she was now ready to focus on European investment.

She said she saw the opportunity to increase the scale of the business using her financing skills, but emphasised that Kenmore’s achievements before her arrival should not be underestimated. The company has more than doubled its asset base since 2003, with more than £700m under management or ownership.

Two new partnerships planned as lower costs and higher yields turn attention to Continent Seven months into Pauline Bradley’s reign as chief executive, Kenmore Property Group is ready for a major European investment drive. Kenmore – which presently co-invests in five partnerships – is planning another two to invest in Europe, which should be launched by late autumn. The focus has shifted from the UK because of the cheaper cost of funds and higher yields on the Continent. A third of Kenmore’s business is now tied up in office, warehouse and retail investments in France, Belgium and Scandinavia. Further expansion is planned for the Paris office, which opened in July 2004, building on its existing portfolio of ¤150m created in partnership with HBOS. Bradley said Kenmore – whose portfolio is 60% industrial, with offices marginally the next largest sector, followed by retail – would stick to western Europe. “In Old Europe the market is more transparent, there is more stability and risks are better understood. We will look at Germany, but only on an opportunistic basis, as its economy is lagging a long way behind its peers.” Meanwhile, as a number of Kenmore’s key staff have turned their attention to the Continent, the need has arisen for a dedicated team of asset managers in the UK. The company is recruiting five new senior staff, taking the Kenmore team up to 45. The UK-based positions cover strategic asset managers and investment and development surveyors. Kenmore is also keeping a weather eye on the latest government thinking. “Any property company would be naïve not to have real estate investment trusts on the agenda,” Bradley said. But the company is keeping its options open. Kenmore’s investors have historically been institutional, although Bradley recognises that the next great pool of money will come from retail investors. Bringing finance finesse to Kenmore Pauline Bradley, a widely respected financier who headed the joint ventures team at Bank of Scotland, joined John Kennedy’s company in January. Her appointment as chief executive was widely heralded as bringing a new dynamism to the co-investor and fund manager. Former Bank of Scotland financier Bradley said her first six months at the Edinburgh-based company, which owns or manages more than £700m of property, had been spent on internal restructuring, but she was now ready to focus on European investment. She said she saw the opportunity to increase the scale of the business using her financing skills, but emphasised that Kenmore’s achievements before her arrival should not be underestimated. The company has more than doubled its asset base since 2003, with more than £700m under management or ownership.