Spezialfonds may win reprieve
Unexpected proposals by the German Federal Finance Ministry to abolish all open-ended real estate funds may be watered down. The 20 July draft Capital Investment Code threatened to outlaw Spezialfonds as well as German open-ended funds open to retail investors. However, after lobbying, the German Property Federation says it is optimistic that the draft will be changed.
Setback for Solvency ll
A European Parliament vote on new Solvency II investment regulations for insurers has been put back until 20 November, prolonging uncertainty over the directive. The vote on the draft Omnibus II directive, which will amend certain aspects of Solvency II, including its launch date, had been sched-uled for 22 October. This will delay work by the EU on the missing areas of detail of Solvency II regulation.
Festival is over for Grosvenor Grosvenor Fund Management has sold Festival Place shopping centre in Basingstoke, the sole asset in the Grosvenor Festival Place Fund, to TIAA-CREF, after the other investors in the fund voted to wind it up. Grosvenor said it will reinvest Grosvenor’s share of the £280m proceeds in UK retail. In Sweden, Grosvenor FM, and co-investors Bouwin-vest REIM and a north American client, have bought Malmo’s 42,000m2 Burlov shopping mall.
CBREGI secures EDS mandate
CBRE Global Investors has won a mandate from EDS Trustee, which required the manager to set up an exempt unauthorised property unit to allow two pension plans to co-invest in a UK portfolio with a target size of £120m.