News releases

New investor commits £162 million to WELPUT

An international institutional investor has committed £162 million to WELPUT (the ‘Trust’), through the secondary market, successfully matching the units made available through the recent redemption window.

27/03/2015

An international institutional investor has committed £162 million to WELPUT (the ‘Trust’), through the secondary market, successfully matching the units made available through the recent redemption window.

The Schroder-managed Central London office trust received redemption requests last year equivalent to 16.5% of its net asset value following the modernisation of the Trust. This modernisation provided for a more open ended structure and an expansion of its investable area across London to benefit from changing occupier trends. Many of the redemption requests were from long term investors top slicing their existing holdings following consistent strong performance. Initial demand for the units has come from European institutions, although there has also been strong interest from Asia.

The Property Adviser to WELPUT is Grafton Advisors (2006) LLP, a wholly-owned subsidiary of Quintain Estates and Development Plc. WELPUT has been the top performing UK office fund over the past five years delivering a total return of 21.5%i per annum (in the five years to 31 December 2014), and 20.7% in the 12 months to 31 December 2014, according to IPDii.

Duncan Owen, Head of Schroder Real Estate, said: 

“We have received a positive reception to WELPUT from both European and Asian investors. Demand for central London offices from international investors remains unsatisfied and there also remains interest for further new investment. The combination of WELPUT’s strong management team, Schroders brand and excellent performance track record, scale and established liquidity support the Trust’s attraction. The Trust's ongoing capital base now provides the opportunity to make further acquisitions to diversify holdings, enhance returns and importantly to invest further in the current portfolio with refurbishments and active management.”

WELPUT’s modernisation last year was undertaken to respond to the current and future requirements of unitholders and was strongly supported by them. In modernising the Trust, the shared objective of investors and Schroders was firstly to provide a vehicle that could better achieve its performance target over the long term and secondly to improve liquidity for existing investors through having a greater diversity of unitholders, a larger overall fund and an annual redemption mechanism. 

WELPUT was advised by CBRE Capital Advisors as placement agent.

For further information, please contact:

Estelle Bibby, Schroders

+44 (0)20 7658 3431 / estelle.bibby@schroders.com

Dido Laurimore / Ellie Sweeney, FTI Consulting on behalf of WELPUT 

+44 (0)20 3727 1000

Notes to editors:

For trade press only. To view the latest press releases from Schroders go to: http://ir.schroders.com/media

WELPUT

West End of London Property Unit Trust (WELPUT) was established in 2001 as a closed ended property unit trust under the laws of Jersey. WELPUT was converted to a more open ended structure in 2014 with the approval of its Holders. The aim of WELPUT is to provide investors with an exposure to the Central London office market. The objective is to outperform the market as measured by Investment Property Databank (IPD). 

The primary investment focus is office properties in Central London. Due to the nature of properties within Central London there will be elements of other uses such as retail and residential. The intention is to focus the portfolio on large multi-let buildings. WELPUT is reserved for experienced investors who must be aware of the risks attaching to the investment.

The manager of WELPUT is Schroder Real Estate Managers (Jersey) Limited, one of the largest managers of Jersey Property Unit Trusts, covering various sectors of the UK market.

Quintain Estates and Development plc is the property adviser to WELPUT having acquired Grafton Advisors (2006) LLP, a partnership formed by the former senior management of Benchmark Group PLC who founded WELPUT in 2001.

Schroder Real Estate 

Schroders has managed real estate funds since 1971 and currently has £11.7 billion (€15.1 billion /US$18.3 billion)iii of gross real estate assets under management as at 31 December 2014.

Most of the real estate funds referred to are unauthorised collective investment schemes as defined in the Financial Services and Markets Act 2000. Promotion of these funds is restricted and access to full information about these funds is only available to those exempt from the restriction.

For further information about Schroders’ real estate business visit www.schroders.com/realestate

Past performance is not a guide to future performance and may not be repeated. The value of investments and the income from them may go down as well as up and investors may not get back the amounts originally invested.

Issued by Schroder Real Estate Investment Management Limited which is authorised and regulated by the Financial Conduct Authority. For regular updates by e-mail please register online at www.schroders.com for our alerting service.

i Fund performance quoted is net of fees.
ii IPD is a leading provider of real estate performance and risk analysis
iii Includes holdings of Real Estate Capital Partners and Schroders Multi-asset Funds in the Real Estate
AUM