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Property

ILIM believes Property is a suitable asset for pension fund investment because of its return and diversification characteristics.

Irish property

The ILIM Irish Property Team comprises 4 experienced property professionals from a chartered surveying/engineering background.
 
The ILIM Property Process also includes a hands-on approach to property management issues such as rent reviews, rent collection, lettings and lease renewals and refurbishment/redevelopment works – all with the objective of maximising the income and capital return from property.
 
For the Irish commercial property market ILIM’s Property selection process involves forecasting returns for each sector (office, retail and industrial/warehouse) of the market at regular intervals. These forecasts have regard to the output from a proprietary quantitative model, the inputs to which are in-house forecasts of variables such as GNP growth, interest rates, inflation etc. From these sector forecasts a forecast for the entire market is derived which is then used to inform the Asset Allocation decision.
 
Having regard to the sector return forecasts, target sector weightings are then established for the property portfolio within a range around the IPD Index weightings.
 
Within each sector, buy/sell/hold decisions are then taken on individual properties having regard to projected total returns for each property which are calculated by adjusting the sector’s forecast yields and rental growth rates to reflect differences between the individual property and sector benchmarks under headings such as location, lease length, tenant covenant, building age, supply/demand balance. These total return projections enable ILIM to appraise existing and possible new acquisitions on the basis of their prospective returns over the medium term. This appraisal guides the activities of ILIM’s property dealers in the market. In addition, ILIM’s property transactions are governed by a set of Stock Selection Criteria with a bias toward good quality properties.
 
Click here for more information on the Irish Life Pension Irish Property Fund.
 
 
 

European Property

Benefits of Henderson Global Investors European property platform, processes and experience.

By investing in this fund you get the benefit of the expertise and experience of the Henderson Global Investors European property platform, working in association with Irish Life’s property team.

Henderson has €13bn of property assets globally under management, with local presence across Europe with offices in Amsterdam, Frankfurt, Hamburg, London, Luxembourg, Milan, Paris, & Vienna. Their property team comprises 63 investment professionals, including a specialist property research department and a dedicated specialist Fund of Funds team, formed in 2001. The ILIM Property team is the largest institutional property team in Ireland, with two fund managers dedicated to International property. ILIM has invested in specialist property funds outside of Ireland for over 5 years and is committed to growing our European and global property capability.

Access to best in class local property fund managers

The Fund targets and invests in a diversified ranged of property funds which have the following common characteristics, which together define the funds investment philosophy;

  • The highest quality management who can demonstrate a strong commitment to maximising investor returns.
  • Properties that are fairly valued with potential for value enhancement maximising upside potential and restricting downside risk.
  • Locations/regions that have long term growth potential and low volatility.
  • Clear and consistent accounting policies
  • Full alignment of financial interests between the fund manager and investors.

The underlying fund selection is achieved through a research driven disciplined investment process. This is based on clearly defined strategies, in-depth Pan-European research, local property market knowledge, detailed property and fund appraisal, manager assessment and portfolio analysis and attribution.

Diversification at country, sector and property levels.

The Fund is invested over 20 underlying funds which give exposure to over 500 properties with an aggregate value of in excess of €10bn, across all property types and main Continental European property markets. The scale and spread of the underlying property holdings gives investor a truly diversified exposure to Continental European Property.