April 2016
For professional investors only. Not suitable for retail clients.
Schroder Real Estate
Investment Management
Strategic partnerships
www.schroders.com/realestate
Strategic partnerships
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
Over €3.4 billion
invested in
strategic partnerships
over 3 years**
Active
management
from Schroders
Independent
fund manager
Over 120
people globally
managing real estate
€1 billion
invested in strategic
partnerships in the
last 24 months
*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).
Strategic partnerships
About us
Gothaer Campus, Cologne
Schroder Real Estate Investment Management offers a broad range of solutions for investors
looking to access European real estate. Beyond our pooled funds, we manage investments
for clients that are large enough to invest directly in a single asset or a portfolio of assets
either in a joint venture or in a separate account with like-minded investors. We have invested
€3.4 billion* of clients’ assets in this way, principally in the largest European markets of UK,
Germany and France. Our European investment team has invested over €1 billion* for clients
in the last 24 months, demonstrating its ability to source assets successfully.
Joint ventures
We currently manage 17 joint ventures for our clients, typically involving two or three
investors. Our investment team has extensive experience in sourcing assets, structuring
the joint venture arrangements, executing the agreed asset management plan and, when
appropriate, liquidating the investment including bespoke exit strategies. Entering into joint
ventures provides the benefits of direct real estate exposure often in relatively large assets
with bespoke structures and a higher level of control over investment decisions.
Separate accounts
Our clients range from those looking to invest in a single country to those wanting to
establish a portfolio on a pan European basis. Typically to do this an investor will need to
invest at least €100 million equity. Mandates may be fully discretionary or advisory. Clients
may prefer separate accounts to pooled arrangements because we can construct the
investment strategy to meet their specific needs e.g. income focused or specific leverage
appetite, tailor the acquisition and disposal programme and they can maintain control,
in particular, over key investment decisions.
*Source: Schroders, at 31 December 2015.
1
Real estate
Joint ventures
Rue du Chevaleret
Bastion Tower
Paris, France
Brussels, Belgium
A 23,400 sqm office redevelopment in the 13th
arrondissement of Paris – Rive Gauche, an area
undergoing significant regeneration.
A 31,600 sqm office tower in a prominent location
of Brussels city centre.
Acquired for a joint venture between one of
Schroders’ European funds and a French institution.
The scheme was 60% leased at acquisition and
since then we have completed the renovation on
time and budget, and fully leased the remaining
space prior to practical completion.
2
Acquired on behalf of a joint venture of two
continental European institutional investors.
The building is of good quality and had
18% vacancy at acquisition. We have since
implemented an active leasing campaign to
increase the occupancy.
Real estate
Joint ventures
55 Bishopgate
City Tower
London, United Kingdom
Manchester, United Kingdom
A 18,502 sqm freehold office building in the City
of London.
A 57,173 sqm mixed use complex of office, hotel
and retail space on a three acre island site in a
prime location of Manchester CBD.
Acquired by one of Schroders’ funds in joint
venture with a European family office investor, on
an off-market basis following a previous failed sale
by the vendor.
The asset had immediate vacancy of 27% which
we are currently leasing up as well as
re-configuring the retail units to improve rents.
Acquired by a joint venture of three Schroders’
managed funds.
We have increased the income from the office
space, and are undertaking refurbishment and
improvement works.
3
Real estate
Joint ventures
Konigstadt-Carre
Ostkreuz
Berlin, Germany
Berlin, Germany
A new landmark 26,157 sqm office tower
with hotel in Alexanderplatz of Berlin Mitte.
An historical 68,500 sqm office building on a large
island site recently refurbished to high quality.
Acquired for a joint venture between two
European institutional investors.
Acquired for a joint venture between one of
Schroders’ European funds and a Nordic
institutional investor.
Sourced exclusively and off-market using
Schroders’ local network and intelligence.
This building benefits from secure long income.
4
Asset management plan is to increase income
by crystalising both existing rental reversion and
further growth arising from local infrastructure
investment and amenities in the surrounding area.
Real estate
Separate accounts
Germany Real Estate
Pan European Real Estate
We manage a diversified portfolio of assets for a
blue-chip German institutional client investing in all
sectors of the German real estate market.
Schroders was recently awarded a mandate to
execute a Pan European investment programme
for an Asian institutional investor looking to enter
European real estate for the first time.
With a strategy to substantially grow the mandate
to €600m, we have invested and reinvested in
excess of €400m during the last 18 months to
reach total.
This account has an investment strategy focussed
on income return and initially investing in key cities
in the UK, Germany and France.
5
S chroder
R eal
E state
Further information
Chris Ludlam
+44 (0)20 7658 6608
chris.ludlam@schroders.com
Philipp Ellebracht
+49 69 975717816
philipp.ellebracht@schroders.com
I nvestment
M anagement
About Schroders
£313.5 billion (€425.4 billion/
US$462.1 billion) managed across
equities, fixed income, multi-asset,
alternatives and real estate.
An extensive global network of
3,700+ employees.
Makoto Fukui
+44 (0)20 7658 7802
makoto.fukui@Schroders.com
38 offices in 28 countries across
Europe, the Americas, Asia,
Middle East and Africa.
Tom Dorey
+44 (0)20 7658 3020
tom.dorey@schroders.com
Over 200 years’ experience of
investment markets.
Schroder Real Estate Investment
Management Limited
31 Gresham Street
London EC2V 7QA
+44 (0)20 7658 6000
realestate@schroders.com
Source: Schroders, at 31 December 2015.
www.schroders.com/realestate
Important Information: The source for all information is Schroders at March 2015 unless otherwise stated. For professional investors and advisors only. Not suitable for
retail clients. This document is intended to be for information purposes only and it is not intended as promotional material in any respect. The material is not intended as an offer
or solicitation for the purchase or sale of any financial instrument. 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. 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. 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. w48628