Project Regent is next on the block as fund unit sales rise

European pension fund lines up sale of €100m-plus fund-unit portfolio

Trading in European unlisted funds is increasing, with bids due in last Friday on a €100m-plus portfolio of secondary units in eight funds.

Project Regent is being sold by a European pension fund multi manager client of CBRE Global Investors, which is said to be rebalancing its property investments and freeing up cash to invest in other interna­tional markets.

Trading in European unlisted funds is increasing, with bids due in last Friday on a €100m-plus portfolio of secondary units in eight funds.

Project Regent is being sold by a European pension fund multi manager client of CBRE Global Investors, which is said to be rebalancing its property investments and freeing up cash to invest in other interna­tional markets.

It is the third large portfolio to come to the market this year and there are said to be at least two more in the wings.

Regent includes interests in eight well-performing funds in sectors including German retail, Paris offices, Nordic offices and outlet malls, with a value of about €110m.

It is expected to attract bids for both the whole portfolio at mid-teen discounts, as well as for individual fund holdings.

Jones Lang LaSalle Corporate Finance is selling Project Regent. JLLCF director Ashley Marks declined to comment on the portfolio sale, but said: “We are excited by the amount of secondaries work we are doing.”

JLLCF is also selling a portfolio called Project Carnaby (see more) and a deal is believed to be imminent.

Carnaby’s units are in 10 funds in south-eastern Europe that have seen considerable falls in value and the investments are expected to sell for around a 50% discount to the €80m- €90m value.

CBRE is also selling a portfolio of units in eight European and Asian funds for Dutch pension fund consultant Achmea. Achmea has already sold out of its US unlisted funds in a sale managed by Lazards.

As Real Estate Capital highlighted in May, about one third of continental European funds, worth €70bn, are at or approaching termination date.

This has led to increased restructuring and trading in the market, as perhaps a quarter of investors look to exit pooled fund investments or reallocate capital.

JLLCF has advised on the completed sale of €100m-worth of units for about half a dozen investors in a €200m pan- European industrial fund (see more); and an aggregate £20m swap of units between an investor in Henderson’s UK Retail Park Fund and retail park fund Hercules Unit Trust.

The firm recently recruited Dan McAllister from Hender­son and Meg Brown from CR Investment Management to join the secondary fund and primary equity raising team. Alex Griffiths is leaving the company.

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