It’s now almost three months since we last wrote about the New Star International Property Fund. During time it has exceeded its original (launch phase) target of £200m, reporting that £206m was actually subscribed. However, the same period has seen turbulence for investors in the new fund’s big sister, New Star’s Property Unit Trust, with lower returns sparking a rush to get out.

What’s certainly not open to question is New Star’s thoroughness in stating case through advertising in good times and bad. The group launched a new campaign in the personal finance press specifically to deal with the bad publicity arising from the switch to ‘bid basis’ pricing when the volume of ‘sell’ instructions threatened to undermine the model that a property fund like New Star’s works on.

Read the rest of this entry »

Morgan Stanley’s MSREF VI fund has collected $8bn. This total will be leveraged up to in excess of $30bn to make property investments around the world but with a heavy emphasis on the Japanese market (50%) and emerging markets (25%). However, Reuters report that 30% of the fund is earmarked for Europe and 60% for Asia, which would appear not to allow as much for the Chinese and Indian markets as other reports are hinting. The MSREF series of funds currently have real estate assets worth $83.5bn and $31.6bn under management. The new fund is intended to have a return of 20% a year, in line with Morgan Stanley’s overall success with these types of fund since 1991. To date 45% of the MSREF VI funds are reported to be committed, including the $2.4bn purchase of 12 hotels and two property management units from All Nippon Airways. It is not apparent to what extent MSREF VI will be buying up portfolios of non-performing loans in its target market, one of its customary investment strategies.

Read the rest of this entry »