This move marks the second security fund that Lend Lease has launched in the past year. It was actually born six months ago, but it is only now that the company has decided to unveil it and shares exclusively with GlobeSt.com insight on its first few weeks.
"Last February Lend Lease launched its first mutual fund, and this past December launched the second installment," Mark Hoopes, vice president and product manager of Lend Lease, reveals. "The main difference between the two funds is that the first invests solely in the US, while the more recent fund looks to the European market. But both are channeled to the US investor.
"Right now the fund is about $10.2 million, as compared to the $12 million in the US fund," states Hoopes. "This fund is only six weeks old, but everyone at the company is pleased with the momentum and are looking at other international opportunities."
"Lend Lease has a team based in Brussels called Lend Lease Houlihan Rovers SA, which manages the new fund and feels that there is a lot of potential in that market," says Hoopes. They site the development of the euro and the recent move in the European community to come together as examples of the market's potential.
Other experts, however, don't see the market across the pond in such a positive light. "The public securities market in Europe is very different than here because there aren't many REITs and the European market is still relatively small outside of the UK," William A. Scully, partner of Apollo Real Estate Advisors LP, tells GlobeSt.com. "The European market has come screaming back, but has lagged the recovery here in the US."
"Plans are in the works to open several other mutual funds specific to the Asia/Pacific market or something in the US with a different feel than the current fund started last February," Hoopes notes. "But right now Lend Lease is taking a look at the appetite out there and is going to spend a fair amount of time doing research before another move is made."
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