Morley has $2 billion to spend on Asian property
giovedì, 26 aprile 2007 10.54
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By Alison Tudor and Yuka Obayashi

TOKYO (Reuters) - Morley Fund Management, one of Europe's largest property fund management firms, said on Wednesday it will expand its property business into Asia and aims to have $10 billion (5 billion pounds) to invest within four years.

With an initial $2 billion for deals from its parent company insurance group Aviva, Morley plans to work with local partners in Japan, China, South Korea and India.

Morley said one of these joint ventures would be with Japan's Mitsubishi UFJ Trust and Banking Corp, with others to be announced soon.

Morley has allocated 50 percent of its $2 billion to invest in Japanese property with the remaining 50 percent spread across the region. It has allocated $500 million to the MUTB joint venture.

"We have strong ambitions for property investment in the region similar to those we had in continental Europe three years ago," said Ian Womack, Managing Director Property at Morley.

HOT PROPERTY

Japanese land prices rose for the first time in 16 years in 2006, offering further evidence that the nation is emerging from deflation with support from a steady economic recovery, a government survey showed in March.

Morley expects to invest in different types of property, but the bulk will be office buildings. The firm also expects to seek deals outside of the Tokyo metropolis where land prices have risen most strongly and competition is becoming intense.

"Japan has attractive returns relative to other real estate markets," Nick Mansley, property strategy and indirect investment director at Morley, told Reuters in an interview.

Morley set up a regional office in Singapore three weeks ago, where Asian fund manager Andrew Peacock and Asian property analyst Guy Cawthra will be based.

Morley has 18 percent of its $325 billion of funds under management in property. In the United Kingdom and Europe, Morley has over 30 billion pounds invested in property assets, up from 8 billion pounds in 2000.