Schroder Real Estate has launched its first £200 million Income Plus Real Estate Debt Fund in association with Venn Partners and has completed its first close.
The Income Plus Real Estate Debt Fund (‘Income Plus Debt Fund)’) builds on the success of the seven previous Partnership Funds created by Schroder Real Estate Capital Partners exclusively for its institutional pension fund clients, and will take assets committed to these exclusive strategies to over £1.2 billion.
The Income Plus Debt Fund will focus its lending on under-banked parts of the UK commercial real estate market, including asset management led and alternative property sectors and assets benefiting from the Schroder real estate key mega themes of demographics, technology and urbanisation. The fund will be targeting whole loans in the £10-25m loan size range and lending up to 75% loan to value.
Schroder Real Estate has completed the first close in the Income Plus Debt Fund in March 2018 and initial capital of £98 million was raised from a number of institutional pension fund clients. The fund is targeted to raise a total of £200 million. Following the successful first close, the fund has already secured a pipeline of circa £40 million of opportunities.
Patrick Bone, Fund Manager, Schroder Real Estate Capital Partners, said:
“We are very excited to launch the Income Plus Real Estate Debt Fund. This is the eighth specialist strategy our Capital Partners team has created for our clients and our first move into real estate debt. These partnerships allow us to access niche strategies and have delivered consistent outperformance for our clients. We have identified a real estate debt strategy that offers our clients attractive risk adjusted returns and believe the combined skills and experience of Schroders and Venn position us well to execute this.
Paul House, Managing Partner at Venn Partners added:
“We are delighted to partner with Schroders in the launch of the Income Plus Real Estate Debt Fund. The fund sits alongside Venn’s four commercial real estate investment vehicles and offers a tailored strategy focused on a part of the real estate debt market which continues to be in strong demand from borrowers.”
For further information, please contact:
Nicole Carey Tel: +44 (0)20 7658 4466/ nicole.carey@schroders.com
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