31 March 2011
For professional investors only. Not suitable for retail clients.
Schroder Exempt Property Unit Trust
Quarter 1 2011 Report
www.schroders.com/seput
Schroder Property Investment Management Limited
31 Gresham Street, London EC2V 7QA. Registered No. 1188240 England
Authorised and regulated by the Financial Services Authority
31 March 2011
Contents
2
Schroder Exempt Property Unit Trust Quarter 1 2011 Report
Page
Investment Objective and Performance
3
UK Property Market Commentary
4
Strategy
5
Key Activities Over the Quarter
6
Performance
8
Databank
9
Unitholder Information
12
Important Information
14
31 March 2011
Schroder Exempt Property Unit Trust Quarter 1 2011 Report
Investment Objective and Performance
Trust Objective
The investment objective of Schroder Exempt Property Unit Trust (SEPUT or the Trust) is to achieve
a blend of income and capital growth for investors through investment in UK property. The Trust
seeks to provide a return of 0.5% per annum (net of fees) above its benchmark (Investment Property
Databank UK Pooled Property Fund Indices – All Balanced Property Funds Median) over rolling
three year periods.
UK Property Market Commentary
⎯
The one main sector of the UK commercial property market seeing rental growth is the central
London office market. Outside central London tenant demand is still generally tepid, vacancy rates
are above equilibrium levels and rents have not quite bottomed out.
⎯
After a sharp fall in late 2009 / early 2010, the all property initial yield has been stable at around
6.4% for the past six months. By historical standards the 2.6% yield advantage of property over 10
year gilts appears generous, although property looks only fairly priced against other assets such as
equities and corporate bonds.
Strategy
⎯
The fund manager’s strategy of repositioning the portfolio is now largely complete, with exposure to
indirect assets and gearing levels significantly reduced.
⎯
Non-income producing assets have also been sold, with proceeds reinvested in assets to improve
both the quality and duration of Trust income.
⎯
We remain underweight to high street retail and overweight central London offices.
⎯
With a more stabilised portfolio the strategy is to balance income security with opportunity within the
portfolio.
Key Activities Over the Quarter
⎯
Sale proceeds were received from a reduction in the stake in Monks Cross Retail Park joint
venture. The sale reduces stock specific risk in the portfolio.
⎯
Additional units were purchased in the Schroder Emerging retail Property Unit Trust (SERPUT¹),
taking SEPUT’s ownership to 99.8%. We expect the purchase of the final units to complete in the
second quarter.
⎯
The sale of Chiswick Park Unit Trust (ChisPUT¹), completed in March.
Performance
⎯
We are pleased to report the continued recovery in performance. A detailed performance
commentary is provided on page 8 of this document.
Q1 2011
(%)
12m to 31
Mar 2011
(%)
3 yrs to 31
Mar 2011
(% pa)
5 yrs to 31
Mar 2011
(% pa)
SEPUT
2.1
10.2
-5.8
-3.1
IPD UK PPFI – All Balanced Property Funds Median*
1.9
8.9
-2.4
-0.6
IPD UK PPFI – All Balanced Property Funds
Weighted Average**
1.9
9.1
-3.9
-1.6
Source: Investment Property Databank (IPD) UK Pooled Property Fund Indices (UK PPFI).
Performance is calculated on a net asset value (NAV) to NAV price basis plus income distributed, compounded monthly,
net of fees and based on an unrounded NAV per unit.
*SEPUT’s benchmark. The Trust’s benchmark has changed over time and a composite for 10 years is available upon
request.
**This measure is widely adopted across the property industry.
¹ Schroder in-house funds
3
31 March 2011
Schroder Exempt Property Unit Trust Quarter 1 2011 Report
UK Property Market Commentary
Occupational Market
⎯
⎯
⎯
The one main sector of the UK commercial property market seeing rental growth is the central
London office market. This reflects strong demand from international financial and business service
companies. We expect office rents to peak around 2014-15, but the timing will depend upon the
level of new development starts over the next two years and the strength of the global economy.
Outside central London tenant demand is still generally tepid, vacancy rates are above equilibrium
levels and rents have not quite bottomed out. On the high street, for example, many long
established multiple retailers are being squeezed by a combination of sluggish consumer spending,
rising commodity prices, the rapid growth of online sales and the expansion of supermarkets into
clothing and other non-food items. There is therefore a significant risk that 2011 will see a new
round of store closures and insolvencies and that the fall in vacancy rates seen in the retail sector in
2010 will go into reverse.
Despite a risk of further tenant insolvencies, the rental income on property portfolios has held up
remarkably well. According to Investment Property Databank total net rental income has only fallen
by 1.2% since its peak in 2008, highlighting the extent to which the upward only rent review clause
on existing leases protects landlords against falls in open market rental values. By contrast the
gross dividend income from UK equities fell by 10.7% between 2008 and 2010 (source: Barclays
Capital).
Investment Market
⎯
⎯
After a sharp fall in late 2009 / early 2010, the all property initial yield has been stable at around
6.4% for the past six months. By historical standards the 2.6% yield advantage of property over 10
year gilts appears generous, although property looks only fairly priced against other assets such as
equities and corporate bonds. Our view is that property yields will remain stable through 2011,
provided long gilt yields remain below 4-4.5%. If long gilt yields jumped higher, property yields
could rise. This would depress capital values alongside other asset classes such as equities.
In keeping with the economy, the last two years have seen a steady improvement in liquidity. In
total there were 1,900 commercial property transactions in 2010, mid-way between the record set in
2006 (2,500 transactions) and the trough reached in 2008 when half the number of properties were
transacted (source: Property Data). Foreign investors and UK institutions have been the major
buyers in recent quarters, while the major sellers have been private property companies. There
have been relatively few distressed sellers, despite the large number of problem loans still held by
the banks.
Outlook
⎯
⎯
4
Our central view is that all property total returns in 2011 will be close to the rate of income return of
6%. However, sub sectors are likely to deviate from this average. Total returns on central London
offices could reach double figures, while returns on high street retail, provincial offices and
provincial industrials are more likely to be between 3-4%, reflecting further limited falls in open
market rents and capital values.
Given the uncertainty over the medium term outlook for inflation we believe that there may be
interesting opportunities in certain niche property sectors where rents are index-linked and
underpinned by structural factors.
31 March 2011
Schroder Exempt Property Unit Trust Quarter 1 2011 Report
Strategy
The completion of various sales in the quarter may lead to a temporarily higher cash weighting than the
benchmark. In the short term this may create a minor drag on returns, but allows us to take advantage of
opportunities which require a quick completion.
The strategy of repositioning the portfolio is now largely completed. Over the last 18 months the Manager
has successfully:
⎯
Reduced exposure to indirect assets
⎯
Reduced portfolio gearing
⎯
Improved the quality and duration of income
⎯
Managed out existing land holdings and development opportunities
The majority of the portfolio is now invested in stabilised income producing direct property. Looking ahead,
our strategy is to balance income levels and security with selected opportunities to meet the Trust's
performance objective. Our strategy is to:
⎯
Ensure SEPUT has a diversified, secure and good quality income stream. With income expected to
be the main driver of property returns over the coming years, this will be important for providing
consistent returns from quarter to quarter.
⎯
Source, select and analyse new opportunities carefully. We will use our property research
capabilities and extensive market contacts to identify the most appropriate properties in the context
of SEPUT's property portfolio.
⎯
Execute business plans for all assets in the portfolio. Each asset has a business plan, reviewed
monthly by the Manager, which determines how and when we expect to generate value from each
asset. Combined at a portfolio level, the Manager builds a profile of income and capital returns
capable of being delivered over the coming quarters. Nick Scott’s appointment as Head of UK
Retail adds to the strength and depth of the team’s experience.
At 31 March 2009
At 31 March 2011
5.8%*
10.0%
26.1%
13.4%
57.6%
16.3%
70.8%
Direct and cash
Gearing (% NAV)
Average lease length
Indirect holdings *
20.6%
6.9%
7.6 years
7.6 years
*Indirect exposure (SERPUT) to reduce in Q2 2011
5
Joint ventures
31 March 2011
Schroder Exempt Property Unit Trust Quarter 1 2011 Report
Key Activities Over the Quarter
Transactional Activity
After completing transactions with a value of £300 million in 2010, activity during this quarter has been
relatively muted. At the end of the quarter, indirectly owned assets had decreased by 4.0% compared with
31 December 2010, reflecting the completion of the sale of Chiswick Park Unit Trust¹, with a corresponding
fall of 3.0% in gearing levels as a percentage of NAV. Please refer to the Databank section for further
details.
Purchases
Schroder Emerging Retail Property Unit Trust (SERPUT¹)
Additional units were purchased, increasing SEPUT’s ownership of SERPUT to
99.8% from 98%. This builds on the major purchases in Q4 2010. The Manager’s
intention remains to own 100% of the units at which point the properties will
effectively become directly owned and reduce indirect exposure in the portfolio by
approximately 5.8%. We expect the purchase of the final units to complete in the
second quarter.
Sales
Chiswick Park Unit Trust (ChisPUT¹)
The Chiswick Park Unit Trust reached the end of its life in December 2009. With
existing unitholders unable to agree on an extension, the park was brought to the
market in Q4 2010. It was offered for sale significantly above the previous
property valuation reflecting the unique and attractive characteristics of this office
campus complex. The winning bid provided more upside to unitholders when the
deal completed this quarter with SEPUT receiving £55.4 million.
Monks Cross Retail Park, York
Proceeds from the partial sale of the Trust’s holding were received in Q1
after unconditionally exchanging for £16.7 million to a new fourth joint
venture partner the previous quarter. The partial sale reduces stock
specific risk in the portfolio and realised a valuation uplift.
¹ Schroder in-house funds
6
31 March 2011
Schroder Exempt Property Unit Trust Quarter 1 2011 Report
Purchases
Sector
Purchase price £m
Net initial yield
Schroder Emerging Retail Property Unit Trust¹
Retail
1.2
5.1%²
Sales
Sector
Sale price £m
Net initial yield
ChisPUT¹
Office
55.4
4.4%²
Monks Cross Retail Park, York
Retail
16.7
4.7%
¹ Schroder in-house funds
² Distribution yield
Asset Management
Number of new lettings
Total income (£)
10
£315,684
Number of rent reviews
Total income (£)
9
£33,678
Waitrose signed a pre-let agreement for a 36,000 sq ft town centre store in Bracknell town centre (the
50:50 joint venture between Schroders and L&G).
The deal is a significant milestone for Bracknell. It will be the first new retail building developed in the town
for over 25 years and provides an anchor to the proposed redevelopment of the town centre, and
demonstrates our commitment to other retailers considering coming to Bracknell.
7
31 March 2011
Schroder Exempt Property Unit Trust Quarter 1 2011 Report
Performance
Total Trust Returns
Q1 2011
(%)
12m to 31
Mar 2011
(%)
3 yrs to 31
Mar 2011
(% pa)
5 yrs to 31
Mar 2011
(% pa)
SEPUT
2.1
10.2
-5.8
-3.1
IPD UK PPFI – All Balanced Property Funds Median*
1.9
8.9
-2.4
-0.6
IPD UK PPFI – All Balanced Property Funds
Weighted Average**
1.9
9.1
-3.9
-1.6
Source: Investment Property Databank (IPD) UK Pooled Property Fund Indices (UK PPFI).
Performance is calculated on a net asset value (NAV) to NAV price basis plus income distributed, compounded monthly,
net of fees and based on an unrounded NAV per unit.
*SEPUT’s benchmark. The Trust’s benchmark has changed over time and a composite for 10 years is available upon
request.
**This measure is widely adopted across the property industry.
SEPUT outperformed its benchmark over the past 3 and 12 months. This continues its record of
outperformance since the trough of the market in June 2009, even at a time when the portfolio has been
substantially repositioned. An early analysis of the Trust’s performance indicates the following factors
contributed to relative performance over the past twelve months:
Positive Drivers
⎯
Asset allocation has contributed positively to returns over the years. Most recently, the overweight
to central London offices and retail warehouses at the expense of other sectors has been an
important driver. Indirect assets in these sectors have also performed well, and West End of
London Property Unit Trust (WELPUT¹) and Henderson UK Retail Warehouse Fund all produced
above benchmark returns.
⎯
Large properties such as Monks Cross Retail Park (York), Mermaid Quay (Cardiff), Crayford and
West India Quay (London) performed well over the past year where we have had success in new
lettings and rent reviews. Multi-let properties of the right specification in the right location can
generate competition for space, and therefore rental growth.
⎯
Profitable sales have boosted returns. The sale of Chiswick Park Unit Trust (ChisPUT¹) completed
in the first quarter 2011, providing significant valuation uplift over the past year. Value has also
been realised through the profitable sales of a number of non-income producing assets (for
example, Charlton, Uxbridge). We hope there will be further sales of this nature to report next
quarter.
⎯
Development profits have started to be taken as the QVC building at Chiswick Park. Construction
of the 124,000 sq ft office building began in the third quarter last year, with practical completion
expected in the second quarter of 2011.
Negative Drivers
⎯
Not surprisingly land and potential regeneration schemes such as Bracknell town centre, Croydon
and in the City have underperformed the market. Bracknell has a running yield of over 6%, but the
lack of income generated by land detracted from short term relative returns, although values have
been stable for over twelve months. For these type of assets, performance should be driven by the
recovery of the occupier markets and asset management initiatives. The recent new letting to
Waitrose at Bracknell is a deal which could be transformative for the scheme.
⎯
We are still pursuing a strategy of further selective sales to reduce the quantum of non-income
producing land in order that the Trust can then benefit from the remaining ‘development’
opportunities.
¹ Schroder in-house funds
8
31 March 2011
Schroder Exempt Property Unit Trust Quarter 1 2011 Report
Databank
Trust information
At 31 March 2011
Offer price per unit
£33.54
Mid price per unit
£32.49
Bid price per unit
£31.44
NAV per unit
£32.01
Distribution yield¹
4.1%
Bid-offer spread (% offer price)
6.25%
¹ Please note that the distribution yield is calculated on the gross distribution paid (gross of tax, net of expenses and fees)
for the last twelve months as a percentage of the latest NAV per unit.
Investment portfolio
At 31 March 2011
Net asset value (NAV)
£1,236,126,462
Gross asset value (GAV)
£1,307,845,282
Property value
£1,111,135,573
Cash at bank
£125,636,641
Uncommitted cash
£86,638,020
Net initial yield (look through analysis)
6.0%
Equivalent yield (look through analysis)
6.6%
Net reversionary yield
6.7%
²
Void rate (look through analysis)
6.7%
Number of holdings
56
Number of tenants (look through analysis)
737
Debt
6.9% (% debt / NAV)
-3.2% (% net debt / NAV)
²
Voids include the direct portfolio, all joint ventures plus the quoted void rate on the indirect holdings but exclude land and
developments. Data for Henderson and UNITE at Q4 2010. IPD methodology used which treats tenancies in
administration as not being voids until formally disclaimed.
9
Unitholder information
At 31 March 2011
Number of units in issue
38,617,538
Number of units redeemed over the quarter
13,774
Number of units issued over the quarter
-
Number of units matched over the quarter
478,071
Value of units matched over the quarter
£14,912,890
Unit availability
Please phone Tom Dorey on +44 (0)20 7658 3020 or +44
(0)20 7658 6000
31 March 2011
Schroder Exempt Property Unit Trust Quarter 1 2011 Report
Portfolio Analysis at 31 March 2011
Sector Exposure including Cash, % GAV
9.6%
Standard Retail
8.2%
1.9%
7.7%
Shopping Centres
Retail Warehouses
19.6%
19.3%
Central London Offices
Rest of UK Offices
16.5%
17.0%
Industrial
Other
Cash
Source: Schroders, subject to rounding.
GAV: gross asset value
Portfolio Structure, % NAV
15.8%
Directly owned assets and cash
13.4%
Joint ventures
70.8%
Indirect assets
Source: Schroders
NAV: net asset value
Tenant Profile, % Contracted Rent
Fujitsu Services Limited 4.1%
QVC 3.7%
British Telecommunications PLC 3.5%
Lloyds TSB Bank Plc 3.0%
Exel Ltd 2.9%
B&Q Plc 2.1%
Sportsdirect.com Retail Ltd 2.0%
Homebase 1.7%
DSG Retail Ltd 1.5%
Cable and Wireless UK 1.5%
All other tenants 74.0%
Source: Schroders
10
31 March 2011
Schroder Exempt Property Unit Trust Quarter 1 2011 Report
Relative Segment Positions, %*
Underweight
Absolute Segment Positions, %
Overweight
-1.3%
-5.6%
-4.3%
0.0%
2.3%
2.8%
0.2%
-1%
5.6
6.9
Standard Retail - Rest of UK
2.6
8.2
Shopping Centres
1.9
6.2
Retail Warehouses
19.6
19.6
Offices - Central London
16.5
14.2
Offices - South East
11.0
8.2
Offices - Rest of UK
5.8
18.0
8.6
Industrial - Rest of UK
1.3
7.4
7.7
8.6
9.6
6.4
Other
Cash
3.2%
-3%
Standard Retail - South East
6.0
-0.9%
-5%
Benchmark*
9.4% Industrial - South East
-6.1%
-7%
SEPUT
1%
3%
5%
7%
9%
11%
Source: Schroders, 31 March 2011
*Positions relative to IPD UK Pooled Property Fund Indices – All Balanced Funds Weighted Average. The weighted
average has been used as this level of information is not available in the median.
Data subject to rounding
Top Ten Holdings
Top ten holdings
Sector
% of NAV
Schroder Emerging Retail Property Unit Trust1
Standard Retail
5.8
Bracknell
Retail and Office
4.8
Monks Cross Shopping Park, York
Retail Warehouse
4.1
Acorn Industrial Estate, Crayford
Industrial
3.9
Matrix, Park Royal, London NW10
Hercules Unit Trust1
Industrial
Retail Warehouse
3.7
3.5
Fujitsu Office Complex, Central Park, Manchester
Office
3.3
Parker Tower, London, WC2
Office
3.3
Mermaid Quay, Cardiff
Leisure
3.2
St William House, Cardiff
Office
3.0
Source: Schroders, 31 March 2011
1
Schroder in-house funds
11
31 March 2011
Schroder Exempt Property Unit Trust Quarter 1 2011 Report
Unitholder Information
The following is a brief summary of certain provisions relating to the Trust. For full details, reference
should be made to the Trust Deed which is available from the Manager on request.
Management and Administration
Trustees:
The Royal Bank of Scotland plc
Manager:
Schroder Property Investment Management Limited
Property Manager:
Schroder Property Investment Management Limited
Valuer:
BNP Paribas Real Estate
Auditors:
PricewaterhouseCoopers LLP
The Supervisory Board
Members of the Supervisory Board and their details are shown in the Report and Accounts. The
principal role of the Supervisory Board is to set out strategic investment and borrowing guidelines for
the Trust. It also monitors risk control and ensures that principles of sound corporate governance
are observed in the management of the Trust’s assets. It approves the key appointments made in
relation to the Trust and the remuneration of the Manager and Property Manager.
Issue of Units
New units are issued monthly on the Valuation Date and payment must be received by the Trustee
within the first five working days of the following month. Title to units will be evidenced by an entry in
the register of unitholders. The dealing cut off time is noon on the Valuation Date.
Redemption of Units
To redeem units, a written notice must be received by the Manager prior to a quarterly redemption
notice date, being 31 March, 30 June, 30 September and 31 December. Unitholders will then be
advised of the fair value of each unit (usually bid price) within six weeks and the proceeds will be
paid on the next quarterly redemption notice date. In common with other property unit trusts, the
Manager has the power, subject to prior written approval from the Supervisory Board, to direct that
the date of payment of redemption proceeds to unitholders may be postponed until a subsequent
Redemption Payment Date, not later than two years after the first Redemption Payment Date. This
power must be exercised, and unitholders duly notified, within six weeks of the relevant Redemption
Notice Date.
Valuation
The property portfolio is independently valued on the last working day of each month. The offer and
bid prices are set on the basis of this valuation.
Bid/Offer Spread
The bid/offer spread is 6.25%. Bid and offer prices are reviewed regularly by the Manager to ensure
new and existing investors are treated fairly. These may be varied without notice, although in
practice we intend to inform investors in advance of any change.
Costs and Fees
The following fees and charges will be payable:
Trustee’s fee:
0.0224% per annum on the first £500 million of the Trust’s Net Asset Value
0.0125% per annum on any excess over £500 million of the Trust’s Net
Asset Value
Manager’s fee:
0.3% per annum of the Trust’s Net Asset Value
Property Manager’s fee: 0.4% per annum on the Gross Value of direct holdings and capital cash
12
31 March 2011
Schroder Exempt Property Unit Trust Quarter 1 2011 Report
Where the Trust invests in property related investments which are managed by an associate of the
Manager or the Property Manager, fees earned by the associate on the Trust’s net investment, are
not rebated to the Trust, with the exception of SERPUT, where the Trust receives a rebate of 0.3%
on SERPUT’s gross property value (based on the Trust’s holding). These indirect managers levy
their own fees which may include performance fees.
The Manager’s and the Property Manager’s fees are charged in full to the Income and Expenditure
Account, 50% of such fees are allocated to capital and not deducted from distributions for the
purpose of determining the value of such distributions.
The remuneration of the Manager and the Property Manager is set by the Supervisory Board.
Total expense ratio (TER): estimated TER is 0.84% of NAV at 31 March 2011.
Income Distributions
Income of the Trust is distributed monthly on the fifteenth working day of the month.
Investor Reports
Unitholders receive a quarterly report. The annual report and audited financial statements are
published at the Trust’s year end date of 31 March. An interim report and unaudited financial
statements are published at 30 September.
Responsible Property Investment Policy
The Manager has a policy on responsible property investment which is available on request.
Investment and Borrowing Powers
The Trust Deed requires that the underlying property of the Trust is managed in accordance with the
investment and borrowing powers set out in the Trust Deed. Within these investment and borrowing
powers, the Supervisory Board may set additional investment and borrowing powers to which the
Property Manager must adhere in conducting its property investment management activities.
Investment Restrictions
The holdings and operations of the Trust will be subject to investment restrictions monitored by the
Supervisory Board. These are available upon request.
Fund Codes
Code
Bloomberg
SCEXPUT LN
ISIN
0007866121
Lipper Reuters
60011163
Sedol
0786612
Manager Contacts
Tom Dorey
Head of UK Property Product
tom.dorey@schroders.com
Switchboard
+44 (0)207 658 6000
Direct Line
+44 (0)207 658 3020
13
Hanne Hooton/Katie Nicholson
Client Executive
propertyqueries@schroders.com
Switchboard
+44 (0)207 658 6000
Direct Line
+44 (0)207 658 6787/6562
Sam Wightman
Fund Services
sam.wightman@schroders.com
Switchboard
+44 (0)207 658 6000
Direct Line
+44 (0)207 658 3694
31 March 2011
Schroder Exempt Property Unit Trust Quarter 1 2011 Report
Important Information
Schroder Exempt Property Unit Trust (the Trust) is a collective investment scheme within the meaning of Section 235 of the
Financial Services and Markets Act 2000 (“FSMA”). The Trust is not an authorised unit trust scheme, OEIC or recognised
scheme within the meaning of the FSMA and therefore constitutes an unregulated collective investment scheme. As an
unregulated collective investment scheme, the distribution and promotion of units are restricted, for the purposes of Sections 21
and 238 of the FSMA, to persons who are themselves authorised under the FSMA or who otherwise fall within the categories or
exceptions made under Sections 21 and 238.
Accordingly, this material is directed at market counterparties and authorised persons; intermediate customers; existing investors
in this or a substantially similar fund; and existing clients and newly accepted clients of the Schroder Group where reasonable
steps have been taken to ensure that investment in the Trust is suitable. This material should not be relied upon by persons of
any other description.
Investment in the Trust is only available to Exempt Funds. In general terms an Exempt Fund is a person wholly exempt from
capital gains tax or corporation tax on capital gains. Investment will only be accepted following the completion of a Form of
Authority for the Trust which contains certain warranties and indemnities provided by the potential investor, particularly regarding
the exempt status of the investor and confirmation from HM Revenue & Customs that the potential investor is an Exempt Fund.
Investors and potential investors should be aware that past performance is not a guide to future returns. No warranty is given, in
whole or in part, regarding the performance of the Trust and there is no guarantee that the investment objectives of the Trust will
be achieved. The price of units and the income from them may fluctuate upwards or downwards and cannot be guaranteed.
Property-based pooled vehicles, such as the Trust, invest in real property, the value of which is generally a matter of a valuer's
opinion. It may be difficult to deal in the units of the Trust or to sell them at a reasonable price because the underlying property
may not be readily saleable, thus creating liquidity risk. There is no recognised market for units in the Trust and, as a result,
reliable information about the value of units in the Trust or the extent of the risks to which they are exposed may not be readily
available.
Neither this document/presentation nor any other statement (oral or otherwise) made at any time in connection herewith
constitutes an offer to sell or exchange units in the Trust or any other fund or product and is not soliciting an offer to buy or
exchange and does not constitute an invitation to subscribe for, buy or exchange any units in the Trust or any other fund or
product in any jurisdiction where the offer, sale or exchange is not permitted. Potential investors are advised to obtain and review
independent professional advice and draw their own conclusions regarding the economic benefits and risks of investment in the
Trust as well as the legal, regulatory, tax and accounting aspects in relation to their particular circumstances.
Any investment in the Trust must be based solely on the prospectus, or any other document issued from time to time by the
Manager of the Trust in accordance with applicable laws.
The opinions, beliefs expectations or intentions, unless otherwise stated, are those of Schroder Property Investment Management
Limited (SPrIM). All information and opinions contained in this document/presentation have been obtained from sources we
consider to be reliable. No responsibility can be accepted for errors of fact or opinion. Reliance should not be placed on the
views and information in this document/presentation when taking individual investment and/or strategic decisions.
A potential conflict with the Manager’s duty to the unitholder may arise where a transaction is effected for the Trust in the units of
another fund(s) managed by the same Manager or an Associate of the Manager. However, the Manager will ensure that such
transactions are effected on terms which are not materially less favourable than if the potential conflict had not existed.
The forecasts included in this document/presentation should not be relied upon, are not guaranteed and are provided only as at
the date of issue. Our forecasts are based on our own assumptions which may change. We accept no responsibility for any
errors of fact or opinion and assume no obligation to provide you with any changes to our assumptions or forecasts. Forecasts
and assumptions may be affected by external economic or other factors.
Use of IPD data and indices : © and database right Investment Property Databank Limited and its Licensors 2011. All rights
reserved. IPD has no liability to any person for any losses, damages, costs or expenses suffered as a result of any use of or
reliance on any of the information which may be attributed to it.
This document/presentation is intended for the use of the addressee or recipient only and may not be reproduced, redistributed,
passed on or published, in whole or in part, for any purpose, without the prior written consent of SPrIM.
For the purposes of the Data Protection Act 1998, the data controller in respect of any personal data you supply is SPrIM.
Personal information you supply may be processed for the purposes of investment administration by any company within the
Schroder Group and by third parties who provide services and such processing and which may include the transfer of data outside
of the European Economic Area. SPrIM may also use such information for marketing activities unless you notify it otherwise in
writing.
Schroder Property Investment Management Limited
31 Gresham Street
London
EC2V 7QA
Registered No. 1188240 England.
Schroder Property Investment Management Limited is authorised and regulated by the Financial Services Authority.
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