Tue | Oct 23, 2018

Eppley to assume investment management for Fortress Caribbean Property Fund

Published:Tuesday | January 16, 2018 | 2:05 PM

Fortress Fund Managers Limited, Alleyne, Aguilar & Altman Limited and Eppley Fund Managers Limited have reached an agreement pursuant to which Eppley will assume all investment management and advisory responsibilities for Fortress Caribbean Property Fund Limited SSC.

Under the agreement, Eppley will acquire the unlisted common shares of the Fund now held by Fortress and Altman Real Estate, according to a release.

The agreement has received the support of the Fund’s board but remains subject to regulatory and other approvals.

The listed cellular shares held by more than 2,000 individual and institutional investors in the Fund’s two cells – Value Fund and Development Fund – are not a part of the agreement, the release said.

Eppley sees an opportunity to build greater scale, diversification and liquidity for the Fund and to streamline and improve its operations for the benefit of investors, it said.

The release added that the company has the capacity and the reach to grow the Fund across the region and offer wider diversification both in terms of geography and asset mix.

Nicholas Scott, Managing Director of Eppley said the company “has a track record of delivering consistent and attractive returns for its shareholders and this further diversifies our investments and continues to broaden our reach across the Caribbean.”

Roger Cave, Managing Director of Fortress said that “while we will continue to invest in real estate through the Fund, we have made a decision to no longer manage it directly.”

The change in management will enable Fortress to focus exclusively on its core Caribbean and global fund management business, encompassing 13 other funds and more than 10,000 clients.

It is expected that Fortress will continue to have a representative on the Fund’s board, while Altman Real Estate will continue to offer services to the Fund on a competitive basis.

Fortress Caribbean Property Fund is a Barbados-based closed-end mutual fund which invests in real estate in the Caribbean.

As of September 30, 2017 the Fund's real estate portfolio had net assets of BD$67.5 million.

- business@gleanerjm.com