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MORLEY LAUNCHES REIT

Europe’s largest property fund manager is pairing up with CB Richard Ellis to launch a new REIT. U.K.-based Morley Fund Management, which handles more than $286 billion in real estate investments, announced in March that it plans to team up with CB Richard Ellis Global Real Estate Securities, a subsidiary of CB Richard Ellis Investors, to launch the Aviva Funds Global REIT Fund.

“Global REITs offer investors a significant source of diversification, excellent liquidity and generally lower volatility compared to other equity asset classes,” said Jeremy Anagnos, co-chief investment officer of CB Richard Ellis Global Real Estate, in a press release. “Since 1990 the value of the global REIT market has increased from $150 billion to more than $640 billion.

The fund will invest in listed real estate securities across the globe, focusing on those markets that either have, or will likely have, REITs.

Aviva will target institutional and retail investors in Europe and the U.K. and will try to outperform the UBS Global Property Investors benchmark by at least 100 basis points, the companies say.

Morley announced plans last year to launch a REIT with a partner, but locating the right collaborator took time and patience, says Chris Laxton, head of external property funds at Morley. Aviva is subject to regulatory authorization in the U.K. and other European markets.

— Brannon Boswell