Schroders Property Investment Management has held the first close of the Schroder Core European Property Fund, specifically designed for Swiss tax exempt pension schemes.
The fund closed on 21 December 2012 at EUR225m. It is expected to double in size before a second close later this year.
Schroders Property Investment Management is the investment manager and the fund was launched in partnership with Zurich Investment Foundation.
The fund will focus on good quality, income producing property in the largest and most liquid property markets in Europe. The initial phase of the investment programme will focus on the key markets of France and Germany but the fund will also invest across a number of countries throughout Europe in due course. The fund is Euro denominated and as part of the investment objective it aims to distribute annual dividends of five per cent per annum, although this is not guaranteed.
Duncan Owen, head of property investment, Schroders, says: “This is a unique proposition for Swiss pension funds to invest tax efficiently and we look forward to working with the Zurich Investment Foundation. The strategy is clear and our experience across Continental Europe in managing property investments provides a strong platform from which to execute and invest. Following our appointment to manage the EUR300m listed European Real Estate Trust (formerly known as Matrix) this is further evidence of our commitment to building our Pan-European property business.”