Fund Domiciles

Arteon appointed as asset manager in Isle of Man

Posted: 04 February 2010

Arteon PLC has recently been incorporated with Isle of Man property company, IOMCO, to provide its asset management services. In a newly formed subsidiary, IOMCO will receive asset management services through a two-phased process.

IOMCO looks to raise enough equity to acquire pre let German residential property assets of up to €30 million, and the second phase will entitle acquiring property assets of up to €100 million. Fund raising started over two weeks ago on January 11, 2010, and IOMCO has secured conditional and unconditional equity commitments. Given that all conditions are satisfied and leverage is obtained, this would allow IOMCO to get €10 million in assets.

Currently, Arteon is negotiating with several sellers of suitable German residential property assets that would meet IOMCO criteria of proving an initial yield on purchase of between 9 -11%. And Arteon will be using a newly licensed Orchos platform to manage IOMCO's assets.

"We are delighted to be able to announce this engagement which represents the first commercial exploitation of our new platform," said Peter Hagerty, Chairman of Arteon. "This vehicle is focused on delivering an attractive level of income to its investors within the highly transparent reporting framework offered by the Orchos platform. Importantly, it will serve as a valuable showcase as we set out to enable similar investment vehicles in the near future."

As a result of the agreement, Arteon will receive both an annual fee of 0.6% of gross assets under management (subject to a minimum monthly fee of €1,000), and an asset acquisition fee of 0.6% of gross assets acquired (payable on acquisition). However, fees will only be payable to Arteon only if IOMCO unconditionally reaches its minimum subscription level.

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