April 2016
Schroder Real Estate
Capital Partners
www.schroders.com/realestate
For professional investors only. Not suitable for retail clients.
Schroder Real Estate
Highlights
£13.1 billion
75% assets
outperforming
(€17.8bn / US$19.3bn)
of gross real estate asset
under management*
Broad range
of investment
strategies
45 years
experience
of managing real estate
£3.5 billion
(€4.8bn / $5.2bn)
managed in
Capital Partners*
over 3 years**
Active
management
from Schroders
Independent
fund manager
Over 120
people globally
managing real estate
Bespoke
investments
available only to
Schroders’ clients
*Source: Schroders, at 31 December 2015. Real estate AUM includes cross holdings in certain Schroders managed real estate funds.
**Performance measured against its official benchmark (this may or may not include fees).
Schroder Real Estate
Capital Partners
Office in Oxford Business Park, owned by Mayfair Capital Property Unit Trust
Our commercial property portfolios combine bespoke strategies with best-inclass third party funds that seek to create what we consider to be unrivalled
access to market opportunities and superior returns for our clients.
Tailoring portfolios for clients’ needs
Schroder Real Estate Capital Partners (SRECaP) tailors its portfolios to
meet investors’ needs and maximise market opportunities. By combining
market leading third party funds with bespoke investments available only to
Schroders’ clients, we can access and capitalise on a broader opportunity
set. Where others adopt a multi-manager approach using only third-party
funds, Schroders’ scale and broad network of market contacts allow us
also to design individual investment solutions not otherwise available to
clients. By the end of December 2015, we had created seven exclusive
funds for clients investing more than £850 million. Strategies range from
diversified core funds to specialist investments in alternative real estate
sectors, such as local retail and car showrooms.
1
Implementing our
investment ideas
Pooled funds
For clients who want low-cost access to our best investment ideas,
we offer four pooled products:
–– The Schroder Indirect Real Estate Fund (SIRE) is an open-ended
unit trust investing across sectors and styles in the UK. SIRE has
outperformed its benchmark since launch in 20041.
–– The Schroder Real Estate Real Income Fund (RIF) is an incomeorientated open-ended unit trust that aims to generate inflation-beating
returns2 through investment in UK real estate. RIF has exceeded its
performance objective every year since launch in 2011.
–– Schroder Real Estate Fund of Funds – Continental European Funds
I and II are closed-ended funds investing in continental Europe.
Separate account
service
For clients who want a more tailored approach, a separate account
provides them with the greatest degree of control over their assets.
We tailor separate accounts for clients with more than £30 million
(€40 million/US$50 million) to invest, taking into consideration their
particular needs. These can be managed through single country, regional
or global portfolios. Our separate account solutions adopt the same
approach of blending bespoke strategies with off-the-shelf funds.
Source: Schroders, AREF/IPD UK Quarterly Pooled Property Fund Index (PPFI), at 31 December 2015.
Source: Schroders, RIF’s benchmark is UK Retail Prices Index plus 5% p.a. measured over rolling seven year periods
1
2
2
Sovereign House, 31 King Street, Hammersmith, owned by Metro Property Unit Trust
Case study:
Metro Property
Unit Trust
–– Launched in 2013 in partnership with a specialist asset manager.
–– Clear investment guidelines:
The fund is a core vehicle targeting smaller lot sizes in the
£5–10 million range with a focus on office and industrial assets.
–– Rationale:
The allocation is in line with our strategy of increasing allocations
to core funds.
–– Liquidity:
To December 2015, Schroders has invested more than £150 million in
the Metro Property Unit Trust. The vehicle has offered us timely access
to this specialist property advisor at a time when many core funds had
queues of investors.
–– Track record of outperformance:
The partnership has delivered strong outperformance since inception in
August 2013.
Source: Schroders, at 31 December 2015.
3
Nissan Showroom, Maidstone, owned by Metro Property Unit Trust
Schroders
Our business
Since launch in 1997, Schroder Real Estate Capital Partners has one of the
longest track records in the business. Today it manages over £3.5 billion
(€4.8/$5.2 billion) of assets through separate accounts and pooled funds.
We manage money for public and private pension schemes, endowment
funds, charities insurance funds and other professional investors.
Our team of managers and analysts is supported by dedicated real estate
researchers and operations staff, as well as the resources of the wider
Schroders group. We believe the broad range of skills within our team
sets us apart from other managers.
SRECaP is part of Schroder Real Estate Investment Management
Limited. The firm has managed real estate funds since 1971 and now
has £13.1 billion (€17.8/$19.3 billion) of gross real estate assets under
management. Schroders is a global asset management company with
£313.5 billion (€425.4 billion/US$462.1 billion) under management.
Source: Schroders, at 31 December 2015.
Real estate assets under management include cross holdings in certain Schroder managed real estate funds.
5
S
chroder
R
eal
Further information
E
state
approaches
About Schroders
Graeme Rutter
Head of Real Estate Capital Partners
+44 (0)20 7658 6768
graeme.rutter@schroders.com
£313.5 billion (€425.4 billion/
US$462.1 billion) managed across
equities, fixed income, multi-asset,
alternatives and real estate.
Olivia Pember
Real Estate Product Manager
+44 (0)20 7658 3552
olivia.pember@schroders.com
An extensive global network of
3,700+ employees.
Schroder Real Estate Investment
Management Limited
31 Gresham Street
London EC2V 7QA
+44 (0)20 7658 6000
realestate@schroders.com
38 offices in 28 countries across
Europe, the Americas, Asia,
Middle East and Africa.
Over 200 years’ experience of
investment markets.
Source: Schroders, at 31 December 2015.
www.schroders.com/realestate
Important Information: The source for all information is Schroders at 31 December 2015 unless otherwise stated. For professional investors and advisors only. Not
suitable for retail clients. The material is not intended to provide, and should not be relied on for, accounting, legal or tax advice, or investment recommendations. Information
herein is believed to be reliable but Schroder Real Estate Investment Management Limited (Schroder REIM) does not warrant its completeness or accuracy. No responsibility can
be accepted for errors of fact or opinion. This does not exclude or restrict any duty or liability that Schroder REIM has to its customers under the Financial Services and Markets
Act 2000 (as amended from time to time) or any other regulatory system. Schroder REIM has expressed its own views and opinions in this document and these may change.
Reliance should not be placed on the views and information in the document when taking individual investment and/or strategic decisions. For your security, communications may
be recorded or monitored. Past performance is not a guide to future performance and may not be repeated. The value of investments and the income from them can go down
as well as up and investors may not get back the amount originally invested. Real estate-based pooled vehicles such as real estate unit trusts, invest in real estate, the value of
which is generally a matter of a valuer’s opinion. It may be difficult to deal in the units or to sell them at a reasonable price because the underlying real estate may not be readily
saleable. There may not be a recognised market for units in these investments and, as a result, reliable information about the value of units or the extent of the risks to which they
are exposed may not be readily available. A potential conflict with the manager’s duty to the client may arise where the manager invests in units in an investment vehicle managed
by itself or an Associate. For the purposes of the Data Protection Act 1998, the data controller in respect of any personal data you supply is Schroder real estate Investment
Management Limited. Personal information you supply may be processed for the purposes of investment administration by the Schroder Group which may include the transfer
of data outside of the European Economic Area. Schroder Real Estate Investment Management Limited may also use such information for marketing activities unless you notify
it otherwise in writing. The Schroders Real Estate Multi-Manager Service will involve investment in unregulated collective investment schemes, as defined in the Financial Services
and Markets Act 2000 (“the Act”), and consequently, all or most of the protections provided by the UK regulatory system do not apply and compensation under the UK Financial
Services Compensation Scheme will not be available. Issued by Schroder Real Estate Investment Management Limited, 31 Gresham Street, London EC2V 7QA. Registered No.
1188240 England. Authorised and regulated by the Financial Conduct Authority. w48630 INS04721