Savills plc
Report and Accounts 2007
Fund Management
Fund Management
Cordea Savills manages a number of mainly closed ended funds in the UK and Europe on behalf of institutional investors. It focuses on creating market and sector specialist funds as well as core pan-European funds. Through a limited liability partnership, Savills owns 60% of this business; the remaining 40% being owned by members of the Cordea Savills management team.
Performance in 2007
Revenue increased to £15.4m (2006: £7.2m) reflecting the growth of funds under management to £3.5bn (2006: £2.1bn) at the year end. Underlying profit before tax increased to £4.1m (2006: £0.7m) reflecting the investment we have made over the last few years which is now starting to generate substantial income.
Cordea Savills has successfully met investor demand for alternative sectors in the UK, such as student halls. In continental Europe, investors have been looking at more opportunistic-style ventures as well as more specialist funds to meet their performance objectives. Cordea Savills was well placed to service both of these requirements and six new funds were launched.
Total staff grew to over 80 people and we opened new offices in Stockholm, Luxembourg and Dublin to complement the existing offices in London, Milan, Munich and Paris. We expanded our European institutional client base with new investors from the UK and the Netherlands, the Nordic countries and Italy.
Key achievements of 2007
We have been building a reputation for creating innovative funds, especially market and sector specialist funds. Particular achievements in 2007 include the launch of the following funds:
- German Retail Fund
- Italian Opportunities No.2
- UK Property Ventures No.1
- Pan-European Property Fund
- Cordea Nichani Indian Opportunities No.1
- Cordea Savills Nordic Retail Fund
Investment performance was particularly pleasing. The UK-based segregated mandate team was recognised with awards from two leading trade journals for managing the best performing UK pension fund property portfolio over the previous three-year period to December 2006.
The investment programme for Cordea Savills Italian Opportunities No.1 was completed in the first half of the year, and further equity raising and investment was completed for the Cordea Savills Student Hall Fund. This latter fund was also the top performer in the IPD UK Pooled Property Fund Indices for 2007 reflecting Cordea Savills’ strength in alternative sector investment.
Future plans
Cordea Savills continues to expand its European product range in new European markets and to build on its strategic venture with Nichani Group in India.
