Schroders launches Core European Property Fund

Schroders Property Investment Management (SPrIM) is announcing the first close of a Schroder Core European Property Fund specifically designed for Swiss tax exempt pension schemes.

The fund closed on 21 December 2012 at €225 million.  It is expected to double in size before a second close later this year.  SPrIM is the Investment Manager, the fund was launched in partnership with Zurich Investment Foundation.

The Schroder Core European Property Fund strategy will focus on good quality, income producing property in the largest and most liquid property markets in Europe. The initial phase of the investment programme will focus on the key markets of France and Germany but the fund will also invest across a number of countries throughout Europe in due course. The fund is Euro denominated and as part of the investment objective it aims to distribute annual dividends of 5% per annum, although this is not guaranteed.

Duncan Owen, Head of Property Investment, Schroders commented: "This is a unique proposition for Swiss pension funds to invest tax efficiently and we look forward to working with the Zurich Investment Foundation. The strategy is clear and our experience across Continental Europe in managing property investments provides a strong platform from which to execute and invest.  Following our appointment to manage the €300 million listed European Real Estate Trust (formerly known as Matrix) this is further evidence of our commitment to building our Pan-European property business."

Schroders is experienced in managing both private and listed property investment companies in the UK and across Continental Europe. The investment team is led by Duncan Owen and Tony Smedley, who joined in July 2012 and reports to Duncan.  Tony will become the Fund Manager for this latest fund, he will be supported by local and specialist teams in France, Germany, Benelux, Italy and the Nordics. Schroders has managed property funds in Europe since 1971. It has €12.8 billion of gross property assets under management (at 30th September 2012) with a team of covering nine local offices, including the UK, and about 100 property staff.

Tony Smedley, Head of Pan European Property Funds, Schroders commented: "We are excited by the diverse investment opportunities available in the Pan-European markets and very much look forward to being a buyer with equity available for immediate investment.  We believe there is significantly reduced competition for stock in our target markets; this should provide us with a competitive advantage over the next 12 months."

This new fund launch is the latest in a number of new developments for Schroder Property. Following the transfer of the team and ex Invista Funds, including the Invista Foundation (now the Schroders REIT) in January 2012, Schroders has continued to strongly grow its Property Assets under Management. Other growth during 2012 has included the Global Property Securities Fund,  Property Multi Manager business which took over the Boots Pension Fund mandate in 2012 and Schroders also won the mandate to run the Pan-European listed investment trust ‘EREIT' in September 2012.