Chevron builds up stake in SL property fund – updated

Chevron’s UK pension plan has increased its position in Standard Life Investments’ European Property Growth Fund (EPGF), according to UK regulatory notices.

This week Chevron acquired a stake from Seoul-based Hanwha Life Insurance, and in November it bought a stake from Cambridgeshire County Council.

Chevron did not return a request for comment by press time.

EPGF initially raised €300 million in 2002. However the fund’s limited partners demanded increased flexibility and a longer fund life, so EPGF was restructured to become open-ended in 2005, according to a previous statement from Standard Life Investments. The fund stands at €750 million as of 30 September, a spokesperson from Standard Life Investments said.

Other LPs include Aviva Investors, Lincolnshire County Pension Fund and financial services firm Pen-Sam, according to PEI’s Research and Analytics division. Pfizer Corporate Pension Plan was also an LP in the fund, but sold its stake in August.

EPGF is a diversified core plus fund investing in real estate properties throughout continental Europe. It targets industrial, office and retail constructions and has invested in 27 assets, the spokesperson said.

Over the last three months the fund has acquired an office building in Amsterdam, sold a logistics portfolio of three assets in France, Germany and the Czech Republic and sold a retail warehouse in the latter, the spokesperson said.

The fund expects to provide a net return of 10 percent per year over a five-year period. It is managed by Veronica Gallo-Alvarez, who replaced James Rushworth earlier this year, according to the spokesperson.

This story has been updated to reflect the fact that EPGF currently stands at €750 million, not €800 million and has invested in 27 assets, not 38. It has also been updated to reflect that Veronica Gallo-Alvarez manages the fund, not James Rushworth.