New Star International Property Fund acquires a further three prime properties in Japan

New Star has acquired the 'Rokubancho' Building and the 'Uchikanda' building in Chiyoda-ku, Tokyo, and the 'Nippo Honmachi' building in Osaka for the New Star International Property Fund.

The Rokubancho property is a newly-refurbished prime seven-storey office building let to the cultural arm of the Spanish government on a fixed 10-year lease from 2007. The property is strategically located in Tokyo's central business district and is easily accessible by train.

The Uchikanda building is an eight-storey prime property located in the Chiyoda Ward of Tokyo. The property is located a short walk away from the major Otemachi train station. The property is currently fully leased to a number of quality office users.

The Honmachi building is an 11-storey prime property located in the business area of Osaka, Japan. The property is subject to multiple tenants and is situated close to Sakaisuji-Honmachi JR station.

All three properties have strong tenants, helping to secure an attractive long-term income for New Star's investors. There are also various opportunities to add value.  The total acquisition price is c. ¥9.2 billion and the blended net operating yield is close to 5.5%. 

New Star's property team is actively seeking further assets to purchase in this region as part of the Asia Pacific component of the New Star International Property Fund.  In the last three months the team has acquired three properties in Japan (Tokyo, Hiroshima and Kokura), two in Australia (Sydney) and one in Singapore whilst in Europe it has acquired two properties in Germany (Berlin and Munich) and one in the Netherlands (Amsterdam).

Stuart Webster, New Star's head of global property, says:

"These are exciting acquisitions for New Star. The Japanese market offers compelling opportunities enabling us to buy prime products such as these with strong income streams at attractive yields with good potential for us to add value.

"The combination of these assets plus the recent acquisitions elsewhere in Asia and Europe provide investors with exposure to a quality, diversified portfolio in what is considered by many to be a more stable asset class in these volatile times.  Our Asian acquisition team led by Simon Tyrrell is presently working to close the next acquisition, which will be a prime retail asset in Japan, whilst our European team is working towards signing on a prime Paris office building."

-ends-

For further information please contact:
Trina Arthur                               New Star                          020 7225 9574
Polhill Communications                                                       020 7655 0540

   
NOTES TO EDITORS:

New Star, one of the UK's fastest growing fund management companies, was founded in June 2000 by John Duffield, previously the founder of Jupiter Asset Management, which he built into one of the most successful retail investment businesses in the UK.
New Star is expanding its international business in response to the growing demand from investors in Continental Europe. The aim is to become a leading mutual fund provider in the next few years, offering international investors the investment expertise of one of the fastest growing and most successful UK fund management groups.
New Star's international strategy is to develop key partnerships in local markets.
New Star International's website can be found at www.newstaram.com.

IMPORTANT INFORMATION

Past performance is not necessarily a guide to future performance. The value of investments and any income from them may fall as well as rise and investors may not get back the amount originally invested. The value of investments may also increase or decrease as a result of changes in exchange rates between currencies.  Investments involve certain risks, as described in the relevant prospectus.  Any opinions expressed in this document may vary without prior notice and do not constitute investment advice.

The annual management charge for the New Star International Property Fund is taken from capital. Capital growth will therefore be restricted. The value of investments may be affected by changing stockmarket conditions and, where applicable, by exchange rate movements. Investors may not get back the amount they originally invested when they sell their investment. The New Star International Property Fund invests in a specialist sector, which may be less liquid and produce more volatile performance than an investment in broader investment sectors.

Whilst property valuations are conducted by an independent expert, any such valuation is a matter of the valuer's opinion. The fund could be subject to significant losses if it holds a large position in a particular region that declines in value or is otherwise adversely affected. The amount raised when a property is sold may be less than the valuation, especially if the property needs to be sold quickly. Although the property shares element of the fund provides it with some liquidity, in certain circumstances, for example where there are significant redemptions, there may be constraints on the redemption or switching of shares in the fund. The value of capital and income will fluctuate as property values and rental income rise and fall.

Whilst the manager will seek to hold a relatively diversified portfolio, as a result of operating in an international remit over a large number of jurisdictions and with investments in largely illiquid assets the fund's performance may be adversely affected by changes in market and economic conditions, tax or other laws or regulations or accounting standards.

Due to the time required to acquire properties the fund may at times hold less than 80% in physical properties, particularly during periods of significant inflows such as the launch period.

Although national interest rates and changing currency exchange rates may benefit the fund, they also present an added risk.  The managers may seek to reduce the impact of any risk of fluctuations in international interest rates and currency exchange rates by purchasing instruments that provide hedging.

This document is for professional advisers and other financial institutions only and should not be provided to or relied upon by private investors. This document should not be distributed to any third parties and does not constitute an offer or solicitation to anyone in any jurisdiction in which such an offer is not authorised or to any person to whom it is unlawful to make such offer or solicitation. Distribution of this document and the offering of shares in certain jurisdictions may be restricted and accordingly persons into whose possession this document comes are required to inform themselves about and to observe such restrictions. If this is the case, these funds cannot be the subject of active marketing in your jurisdiction.

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Issued by: New Star Investment Funds Limited. Authorised and regulated by the Financial Services Authority.

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