Pengana delivers European property trust

Pengana Capital has launched a European property trust through a joint venture with UK-based financial services firm Credo Group.

Comprising a portfolio of German retail properties, the Pengana Credo European Property Trust gives investors the opportunity to invest in income-producing diversified property in Europe, with active asset management creating the potential for capital appreciation.

Credo Group is a diversified financial services group specialising in acquiring and managing commercial properties.

This is the first joint venture deal of its kind for Pengana, which has had a presence in the UK for around three years through its London property hedge fund, which has a strong focus on the European market. It is also the group’s first foray into direct assets.

According to Russel Pillemer, executive chairman of Pengana, the fund manager likes the idea of having a strong local partner within the foreign market.

“Europe’s a long way away, and having someone on the ground there is very beneficial,” he said.

Nab is the lead manager for the offer, which will be offered to its institutional, business and private clients in Australia through its Structured Property Finance team, with a minimum investment of $500,000.

At this stage, there are no plans to distribute the trust via platforms, and according to Alex Vynokur, executive director of the joint venture, “Our aim is to target a portfolio of $1 billion in assets under management throughout Europe in the next three years”.

The portfolio is currently worth $158.5 million, with the initial offer seeking to raise $52.4 million to partially fund these seed assets.

The offer opened on April 2, 2007, and closes in mid May 2007. The portfolio currently consists of 24 discount supermarkets, a do-it-yourself supermarket and four car showrooms.