Quercus Fund successfully raises £80 million for new purchases
27 April 2010
• Quercus wins IPD/ IPF UK Property Investment Award
(London): The Quercus Fund, jointly managed by Aviva Investors and Quintain, has successfully raised over £80 million of new equity to fund acquisition opportunities in the UK healthcare sector. The Fund has already committed to the purchase of six assets totalling approximately £30 million and has a further pipeline expected to complete over the coming months.
In a further success for the Fund, it has also been named winner of the Specialist Pooled Funds and Traditional Estates (above £500m) category at the IPD / IPF UK Property Investment Awards awarded for the highest 3-year annualised return to December 2009 within its peer group.
Vicky Amlot, Fund Manager – Real Estate, Aviva Investors, said: “We are delighted to have raised over £80 million of new equity for the Fund which when combined with debt will give Quercus funding to pursue new acquisition opportunities of up to £140 million. We see this as a vote of confidence from our investors in the sector and the ongoing success of the Fund. We are also very pleased that the Fund has received wider market recognition for consistent performance at the recent IPD/ IPF UK Property Investment Awards which further underlines the value of our client offering.
“We view the current environment as an excellent opportunity to capitalise on attractive buying conditions given the stabilisation of yields and anticipated future growth in the healthcare sector, which offers attractive yields and favourable lease structures.
“To this end we have already committed some £30 million of this new capital in two deals relating to six different assets located across the Midlands and Scotland.”
Adrian Wyatt, Chief Executive, Quintain, said: "The RPI-linked nature of Quercus, combined with the ageing of the UK population and fragmented nature of the market makes this Fund highly attractive to investors. With the recently raised funds and debt providing substantial firepower, we are in a position to make highly advantageous acquisitions that will benefit from our active management approach and deep understanding of the sector."
The Fund, established in 1998, provides a diversified healthcare investment portfolio with a broad geographic and tenant spread focussing on nursing/residential care for the elderly, learning disability and specialist care.
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Notes to Editors
Aviva Investors is the global asset management business of Aviva plc. The company delivers investment management solutions, services and client-driven performance to clients worldwide. Aviva Investors operates in 16 countries in Asia Pacific, Europe, North America and the United Kingdom with assets under management of almost £250 billion at 31 December 2009.
- Aviva is the world’s fifth largest* insurance group, serving 53 million customers across Europe, North America and Asia Pacific
- Aviva’s main business activities are long-term savings, fund management and general insurance, with worldwide total sales of £45.1 billion and funds under management of £379 billion at 31 December 2009
* Based on gross worldwide premiums for the year ended 31 December 2008
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