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Schroders

German Real Estate Fund (SMA)

Executive Summary on German Real Estate Fund (SMA)

Schroders is managing a segregated account on behalf of a large German institutional client. The fund is designed as an open ended fund, regulated under the German Investment Act (GIA), with a strong involvement by the investor. Schroders is (due to AIFMD) the legal owner of the properties and provides transaction, asset management, strategy and reporting services.

The Fund was launched in 2005 in order to fulfil the client’s strategy to move from direct to indirect real estate investment. Through a larger portfolio sale and approx. 20 single transactions in recent years, the portfolio was optimised and found its current shape with 14 assets and a volume of almost € 700 million. The Fund has no leverage and is therefore an equity only mandate.

The objective of the Fund is to invest, divest and manage a well-diversified real estate portfolio of mainly core and core+ assets with the target to provide an attractive level of income return together with the potential for additional income and capital growth. The income target of 4.5-5.0% p.a. has been achieved or outperformed over the last 9 years (as of 31 March 2020).

The investment strategy of the Fund focusses on commercial real estate in the main German cities with the vast majority being invested in the Top 7 cities. The investments are predominately in the office sector with additional allocations to logistics and retail. An active asset management approach is being pursued in optimising the tenant mix, optimising lease terms and/or undertaking refurbishments to improve the value of the assets.

ESG - Environmental / Social / Governance

The environmental regulations in Germany belong to the most developed world wide. Therefore the regulations in place by law already guarantee a high standard in sustainable levels of energy consumption or emissions reduction. In addition the Fund reports sustainability information in accordance with INREV Reporting Guidelines. The environmental data has been developed and presented in line with the Global Real Estate Sustainability Benchmark (GRESB).

Facts and figures

Segregated Account

31 March 2020

Fund Type  / Fund Manager

Open-Ended special AIF │ Schroder Real Estate KVG

Risk Type

Core / Core+

Net Asset Value (NAV)

€ 697.2 m

Gross Asset Value (GAV)

€ 767.3 m

Number of assets

14

Leverage (Debt/Gross property value)

none

Country Allocation

Sector Allocation

100% Germany

75% Office│12% Retail│5% Logistics│8% Other  

Currency Hedging 

n.a.

Distribution yield last 5 years

5.6%

Fund IRR last 5 years

9.2%

Your contact to Schroder Real Estate




Schroder Real Estate KVGmbH

Taunustor 1 (TaunusTurm)
60310 Frankfurt am Main
Germany
Telephone +49 (0) 69 975717-700

Schroder Real Estate Asset Management GMBH:

Maximilianstraße 31
80539 Munich
Germany
Telephone +49 (0)89 242 98-0

Supervisory Authority:

Industrie- und Handelskammer für München und Oberbayern
Max-Joseph-Str. 2, 80333 M
unich

Schroder Real Estate provides its customers with a wide range of pan-European real estate products such as open and closed real estate funds, special funds and fund of funds or listed REITs and real estate equity funds.