REAL ESTATE - Morley and CB Richard Ellis will jointly launch a global REIT fund.
The Aviva Funds Global REIT fund, the sub-fund of a Luxembourg SICAV, will invest in listed real estate securities in markets with REITs. The partners said the REITs market had grown from 鈧�150bn to 鈧�640bn because they offered diversification, liquidity and relatively low volatility.
Strahan Wallis, a Morley spokesman, cited CBRE鈥檚 鈥渟trong coverage of global property markets鈥�, including a dedicated research team, and Morley鈥檚 strength in the European market as factors in the partnership.
Wallis said Morley was 鈥渋nterested鈥� in upcoming REITs legislation, but pointed out that the fund鈥檚 global focus meant it was 鈥渘ot reliant鈥� on legislation in the UK and Germany.
In a recent analysis in McKinsey Quarterly, specialists at the management consultancy firm claimed 鈥渞estrictions and disincentives鈥� in draft REITs legislation in the UK and Germany would 鈥渦nless rectified鈥iscourage corporate participation and leave the promise of REITs unfulfilled鈥�.
The authors identified insufficient tax incentives, ownership restrictions, a mandatory holding period in the German version and gearing restrictions as potentially significant obstacles to uptake.
