Schroder UK Property Fund celebrates 5 year outperformance with Chatham acquisition
Schroder UK Property Fund (SPF) is today celebrating 5 years of outperformance against its benchmark and announces the acquisition of a leisure scheme in Chatham, Kent to add to the Fund’s £1.2 billion portfolio.
Schroder UK Property Fund (SPF) is today celebrating 5 years of outperformance against its benchmarki and announces the acquisition of a leisure scheme in Chatham, Kent to add to the Fund’s £1.2 billion portfolio.
SPF is one of the top performing funds in the AREF/IDF All Balanced Property Fund Index which returned 1.4% in Q2 2013 compared with SPF which returned 2.1%. Against the same weighted average benchmark over 12 months, 3 years and 5 years Schroders UK Property Fund has consistently outperformedii
The leisure scheme in Chatham Kent, purchased for £12.9 million, includes the Odeon Cinema as well as other well known restaurant operators within the Dickens World complex.
Ian Mason, SPF Fund Director, commented:
“Our 5 year outperformance figures come at an interesting time, with property investment firmly on the agenda. Investor confidence has recovered and we are seeing lots more traction from new and existing clients.
“The Chatham scheme has increased our exposure to the leisure sector which we believe offers attractive income and growth characteristics. This purchase provides an initial yield of 8% and average unexpired leases of 18 years.
“Chatham sits alongside the acquisition in April of the multi let Hartlebury Trading Estate in the Midlands. This was a strategic move up the risk curve and into the regional markets, in anticipation that the investment market would start to rally in 2013, which now seems to be the case. Rental growth is likely to remain subdued, so the 10% income yield was the important factor on this acquisition.”
i AREF/IDF All Balanced Property Fund Index (weighted average)
ii Investment Report Summary http://bit.ly/15ZxaB3
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Schroders has managed property funds since 1971 and currently has £10.5 billion (EUR12.4 billion/US$15.9 billion) of gross property assets under management (at 31 March 2013).
All of the property funds referred to are unauthorised collective investment schemes as defined in the Financial Conduct 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’ property business visit www.schroderproperty.com
Schroders is a global asset management company with £236.5 billion (EUR279.7 billion/$359.2 billion) under management as at 31 March 2013. Our clients are major financial institutions including pension funds, banks and insurance companies, local and public authorities, governments, charities, high net worth individuals and retail investors.
With one of the largest networks of offices of any dedicated asset management company, we operate from 34 offices in 27 countries across Europe, the Americas, Asia and the Middle East. Schroders has developed under stable ownership for over 200 years and long-term thinking governs our approach to investing, building client relationships and growing our business.
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