Henderson Global Investors hopes to have a first closing soon for its Central London Office Fund II, after receiving commitments from three investors. It is thought that £100m of equity has been promised by UK, Nordic and North American institutional investors.
The seven-year, absolute-return, closed-ended fund, managed by Clive Castle and Nick Deacon, is modelled on CLOF I, which delivered strong returns and has recently been selling assets to return capital to investors.
CLOF II was launched last May with a 12% target annualised internal rate of return and maximum gearing of 50%. With an overall equity target of £500m, Henderson had initially sought to raise up to £200m for a first closing by the end of 2009, but like many fund managers, has found fund raising tough.
The fund’s investment strategy was designed to take advantage of cyclical opportunities and has also been revised, given the saturation of the market for prime UK assets. It will now seek £50m-plus, multi-let office buildings with medium and short-term leases and asset management angles.