PropertyOct 23 2014

Henderson moves to take on OMGI UK Property fund

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Henderson has moved to take on the £437m Old Mutual UK Property fund and will look to merge it into its £2.3bn Henderson UK Property fund.

The Old Mutual fund, which was launched in 2005, had been run on an outsourced basis by CBRE Global Investors since 2011.

But under the terms of the deal between Old Mutual and Henderson, the fund will be merged into Ainslie McLennan and Marcus Langlands Pearse’s Henderson fund on January 1 2015, subject to regulatory and unitholder approval.

Old Mutual said if the merger proposal was accepted it would “receive consideration from Henderson for facilitating this merger”.

It added: “Once finalised we will have no direct authorised corporate director responsibility so will not receive fees.

“Post merger, we will still have some clients in the fund as our multi-asset teams will still remain investors in the fund.”

Following the merger, the Henderson UK Property fund will grow to £2.7bn, the number of properties in the portfolio will increase from 84 to 108 and the number of tenants will increase from 407 to 577.

Ms McLennan said: “Clients in both funds will benefit from access to a larger and more diversified property portfolio, including a broader tenant mix.

“Our investment process will remain unchanged and we are already very familiar with the 24 properties currently held within the Old Mutual fund, which we view as providing a good fit with the Henderson UK Property Oeic.”