Norwich Union has brought out a European commercial property fund that invests across the office, industrial and retail sector.
The fund, which will be managed by Morley Asset Management, also invests in property-related assets. It will look across the entire EU economic zone, including Switzerland, with its initial focus being on France, Germany and Spain.
The group’s parent company, Aviva, has seeded the fund with almost £40m.
The portfolio’s target asset mix is 85 per cent direct property, 10 per cent property-related listed securities and 5 per cent cash.
Following the fund’s first purchase, a warehouse in Germany, manager Julian Taylor says the vehicle has a strong pipeline of ideas and that it will be making further acquisitions in the near future.
The fund has an initial charge of 5 per cent and annual charge of 1.5 per cent. Minimum investment is £10,000.
Director of marketing investments Neil Davies says: “This fund really completes the range as we already have a UK commercial property fund and we launched a global one late last year.
“Europe as a property story continues to be strong with high yields across the board. This fund can even go into Eastern Europe if we wanted but I do not know if fund managers are happy with that ongoing view.”