Cordea Savills and AMP Capital Investors establish strategic alliance for property fund management.
Cordea Savills and AMP Capital Investors, part of Australia’s leading financial institution, have established a strategic alliance for property fund management.
As part of this alliance Cordea Savills has been appointed as the European portfolio manager for a new global property fund, the AMP Capital Global Direct Property Fund, which is one of the first Australian property funds that will make direct property investments in the US, Europe and Asia.
Cordea Savills will source and manage assets as a discrete European portfolio. Chief executive Justin O’Connor said the European portfolio was estimated to grow to E500m (£341m) ‘within 3 to 4 years’.
The fund broadens the investment choice for Australian institutional investors and was launched this month to Australian and international institutional investors. They are increasingly seeking property investment beyond their domestic real estate market, which represents just 2% of the global property market. AMP Capital Investors research found that, while demand for property in Australia is forecast to grow at an annual rate of 8%, the supply of domestic property is expected to grow at only 3% a year.
The fund is open ended and will have a core and core plus investment style and is currently acquiring seed assets.