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Schroders

Nordic Real Estate Fund

Open-ended real estate special fund according to the German Investment Code with an investment focus on office and retail properties in the Nordic region. - Available for investments

Executive Summary on Schroder Nordic Real Estate Fund

The Schroder Nordic Real Estate Fund provides professional institutional investors access to a commercial real estate allocation in the Scandinavian region. The German Spezial-AIF has a long standing track record and was launched in August 2005. Schroder KVG mbH in Frankfurt and its branch in Stockholm comprise of a team of 18 real estate professionals. The local team in Stockholm paired with the dedicated internal research team based in London working hard in identifying drivers for actual and future strong locations as well as monitoring trends in rents across the region, which is the base for long term decision making processes.

The objective of the Schroder Nordic Real Estate Fund is to invest, divest and manage a well-diversified real estate portfolio of mainly core and core+ assets with the target of a stable cash distribution. The dominantly core investment strategy combines an upside potential of upcoming micro-locations and opportunities for income growth within the buildings. The funds volume is > € 600 million gross asset value and since inception the fund’s dividend yield was at 5.0% p.a. and an IRR of 6.4% p.a. and its performance data are part of the MSCI SFIX Europe funds, of which the Nordic vehicle belongs to the leading funds across Europe (as of 31st of March 2020). It can be highlighted that the distribution is after fees and currency hedging.

The regional investment allocation focuses on the economic growth regions within the northern European countries - Sweden, - Finland, - Denmark, - Norway to emphasis on stability.

Sweden and Norway represent from a macroeconomic perspective a defensive strategy, which offer strong fundamentals as well as positive demographics. This constellation is an essential part for our investment allocation process and has an impact on the way we pick properties in the region. The portfolio focus is on Stockholm, the Öresund Region (Malmö - Lund – Helsingborg) and Gothenburg.

Finland as a member of the Eurozone plays an integral part of our fund’s country allocation. The ingredients of a solid economy, the linkage to the European Union and the motivation to grow the local mobile technology sector reflect a good base to create strong performance with real estate investments. The Finnish market mainly behaves post-cyclical to the Swedish market, which we embed in our strategic stock selection. The fund currently has a planned over allocation to Finland with a bias towards Helsinki to make leverage of the economic growth potential of a leading city within a Eurozone country.

Denmark is also one of the strongest economies not only in the Nordic region, but also in Europe. Copenhagen as the capital had robust economic growth in recent years, the general population’s emphasis on an eco-friendly environment as well as strong real estate fundamentals make the city a natural target of our investment strategy. The fund has the short term ambition to expand its allocation into this region with a substantial proportion of the portfolio’s gross asset value.

ESG - Environmental / Social / Governance

ESG is part of the Nordic culture and spirit for many years and many of the Scandinavian countries are leading in embedding many aspects into their daily private and business lives. The Schroders Nordic Real Estate Fund builds up on this experience in gaining and measuring data as well as implementing improvements into our daily asset management work. The fund participates in the Global Real Estate Sustainability Benchmark (GRESB) and was awarded with a 4 out of 5 star rating (2019) and belongs to the best in their peer group.

Facts and figures

Schroder Nordic Real Estate Fund

31 March 2020

Fund typ / Fund Manager

Open-Ended special AIF │ Schroder Real Estate KVG

Risk Type

Core / Core+

Net Asset Value (NAV)

€ 403.4 m

Gross Asset Value (GAV)

€ 608.4 m

Number of assets

16x Finland│8x Sweden

Leverage (Debt/Gross property value)

35.2%

Country Allocation

Sector Allocation

77% Finland │23% Sweden

68% Office│22% Retail│10% Other  

Currency Hedging 

> 90% of non-Euro currency

Distribution yield since inception 2005

5.0%

Fund IRR since inception 2005

6.4%

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.