18 February 2016
Two Grosvenor funds secure ‘top five funds’ status
Two of Grosvenor Fund Management’s UK funds have been named as top five funds in the latest Association of Real Estate Funds (AREF) / IPD rankings.
London Office I and Urban Retail III (Liverpool) produced some of the strongest returns over the five years to December 2015. Urban Retail III, which counts Liverpool One as its core asset, was also recognised as the top performing unlisted property fund of 2015, with returns well ahead of its peers.
Miles Dunnett, Fund Manager of Urban Retail III, said: “Liverpool ONE is now established as a super-prime retail scheme. Zara and Victoria’s Secret chose to open new regional flagships here while Michael Kors selected Liverpool ONE for its first store in the North West. In total, 29 brands committed to Liverpool ONE in 2015, meaning the centre is 99% let or under offer. Footfall grew 3% year on year in 2015 and total sales by 8.5%.
“This strong performance was driven by a deep understanding of our customers, allowing us to deliver a targeted tenant mix, engaging on-site activity and experience at every visit, building consumer loyalty. As a result we have secured exceptional tenant demand that has underpinned rental growth at a rate well above our peer group.
“The improvement in these fundamental measures of performance has given our external valuer confidence to tighten the yield profile ahead of the market, as the proven performance of the asset makes it attractive to global investors.”
Scott Rowland, Fund Manager of London Office I, said: “The disciplined approach we take has driven the outperformance of the Fund. We are highly selective in our choice of assets, holding high quality properties that we are always seeking to improve, to enhance revenue growth.
“We have sold low growth assets and replaced them with high growth assets, such as Fleet Place House and 10 Grosvenor Street, allowing us to boost income growth and secure exceptional returns.”
James Raynor, CEO, Grosvenor Fund Management, said: “The outperformance of both London Office I and Urban Retail III is evidence of our commitment to long term stewardship and the strategic, value adding approach to managing our assets.
“Grosvenor Fund Management is dedicated to creating sustainable environments in which people want to work, shop and visit. We are very proud of the positive influence that our assets have on their surrounds and this influence is reflected by an increase in tenant demand and subsequent growth of income.”
For more information contact:
Rebecca Dwyer, Press Office
020 7312 6101
Notes to Editors
Grosvenor Fund Management
Our fund management business aims to create value for investors, shareholders and staff by creating compelling investment strategies that are expertly implemented. Building on our recognised skills and track record, we focus on urban property, often mixed-use and with a retail focus, in cities and locations whose vibrancy will endure. We select high-quality assets and manage them vigorously. We treat our tenants, as well as our investors, as partners, building close and mutually beneficial relationships that draw on Grosvenor’s long experience in real estate. We work best with clients who, like Grosvenor, have a long-term view of investments while being alert to the potential of short-term opportunities to enhance returns. As at 31 December 2014, assets under management were £3.0bn with 59 investor partners in 21 property funds, club deals and separate account mandates.