Standard Life Investments (SLI) has launched two property portfolios with assets transferred out of ...
Standard Life Investments (SLI) has launched two property portfolios with assets transferred out of its parent company's life fund.
While the focus is currently on institutional investors, David Paine, SLI property investment director, said it is likely intermediaries will be offered the products in the future on condition that their clients meet the appropriate investment criteria.
With both structured as closed-end Jersey property unit trusts, the majority of the £1.5bn UK Shopping Centre trust and £800m UK Retail Park trust is still held by the life fund, although £380m was sold to the market between the end of February and the end of April, the date of the funds' first closing.
The products are open to what is defined in Jersey law as expert investors, effectively the higher net worth end of the market.
With both requiring a minimum investment of £250,000 during the first phase of investment, they were bought by SLI's own pooled pension fund and unit-linked life fund as well as various local authority pension funds, corporate pension funds and charities.
David Paine, SLI property investment director who has overall responsibility for both trusts, said that as the first close happened over a relatively short period of time with only two weeks allocated for due diligence, there were a number of investors unable to complete in time.
The firm is now continuing a dialogue with them. The target size of the Shopping Centre portfolio is £2bn. It comprises 10 assets, including Brent Cross Shopping Centre and Retail Park, Whiteleys on London's Queensway and the Thistle Shopping Centre in Stirling.
The Retail Park trust, which counts Croydon's Purley Way Retail Park and Guildford's Ladymead Retail Park among its 11 assets, has a target of £1.5bn.
Benchmarked against the relevant sub-sectors of the Investment Property Databank, the products will seek to achieve outperformance either through acquisitions or development projects.
Most of the existing assets have been held by the life fund for extended periods of time and many of them were developed by Standard Life.
For example, it was involved in the development of Brent Cross Shopping Centre in the 1970s.
As the portfolios are being run out of Jersey, SLI has established a wholly-owned subsidiary there, headed by Paine, to manage them.
Named manager on the Shopping Centre trust is Ed Jenkins, while Lorcan Mooney is leading the Retail Park trust.
Both were part of the team that managed the assets before they switched out of the life fund and both have responsibility for individual properties outside of the trusts.
An ambitious objective
'Something completely new'
'Illusion of control'
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Total investment reaches £9m