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LONDON-Invista is to launch a new European property investment trust that will aim to pay out income equivalent to 6% a year. Like other recent investment trust launches, the Invista European Real Estate Trust will be listed in London, though the company itself will be based in Luxembourg.
The new trust will invest in commercial real estate across Europe. Its primary targets for future acquisitions are France and Germany, where the trust will look for assets with attractive income yields. Properties have also been purchased in Spain and Belgium.
The trust will reach an initial euro 699 million ($919 million), comprising bank debt, new money raised and a stake held by existing investors. These include investment bank HBOS and Chelsfield Partners. The offer for the trust will comprise 83.1 million ordinary shares at 200p per share.
Although the management team will continue to be based in London, Invista intends to develop a network of offices across Continental Europe, with bases in France and Germany over the next 12 months.
Tony Smedley, head of European funds for Invista, says the portfolio is almost fully invested in properties and would be of interest to pan-European investors looking for a high-quality income stream. The minimum investment for retail investors is euro 2,969 ($3,891). The original trust was established by the Invista team in June 2005 and is intended to be Invista's primary listed pan-European fund.
Invista, one of the UK's biggest independent property fund managers, is the former property management arm of Insight Investments. Insight was spun off from banking giant HBOS in order to launch its property fund management business on the Alternative Investment Market.
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