Aviva

Morley Fund Management (Morley), one of the UK's largest fundmanagers, has launched the Aviva Central European Property Fund(CEPF), targeted at pan European institutional investors andpension schemes. The Aviva Central European Property Fund will invest directly ina diversified portfolio of office, industrial and retail property,with a focus on the core markets of Czech Republic, Hungary andPoland. The Fund's asset manager, King Sturge, has an extensive network of offices across Central Europe and will procure assetsfor the Fund on an exclusive basis. The Fund is a closed ended Luxembourg Fonds Commun de Placementand closings of the Fund will take place during 2005 to take the Fund up to a target equity base of €200m. The Aviva CEPF will be geared on a 50% loan to value basis, allowing a €400 in property portfolio to be assembled over a three-year investment period. The Fund aims to deliver a dividend yield to investors of7.5% to 8.0% per annum and an investor IRR exceeding 12% per annumover its ten year life.