Schroders has launched a Jersey-domiciled property fund of funds which will give private investors access to investment exposure in UK office, retail and industrial property sectors. These are sectors which, according to the fund management house, are normally reserved for institutional clients.
With a minimum investment requirement of £25,000, the Schroder Indirect Real Estate Fund (SIRE) is an unauthorised trust which will invest in the entire UK indirect property industry through open-ended and closed-ended property unit trusts, limited partnerships, listed and unlisted equities and property index certificates. It will be run by a division of Schroders, called Schroder Property, which handles £3.4bn in assets under management.
"Through SIRE, investors will be able to access a diverse range of property, including the larger properties not normally accessible to the private investor. Schroders has extensive expertise in property investment and has a strong presence in the UK property market," said Mike Clarke, head of product development at Schroder Property.
SIRE will be structured around core investments - such as balanced, liquid and large funds - and satellite investments, such as vehicles with a specific sector, geographical or management focus. The fund cannot invest in vehicles in which debt represents more than 75% of that investment's gross asset value at the time of purchase.
Collective investment funds could represent up to 90% of the fund, and up to 25% can be invested in listed securities. It also allows for up to 10% in cash for periods of more than three months. No more than 40% of the fund will be invested in any single investment. SIRE is limited from investing no more than 50% of its assets in Schroders' own funds, and this restriction also applies to funds provided by any other fund manager.
Schroder Property's fund of funds team has managed portfolios for larger institutional clients under bespoke mandates for approaching six years and has a proven strong track record. It has more than £300m of assets under management.
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