Schroder Property Investment Management Ltd - Offices Sale - £250 Million Property Venture Fund
Date: 02 Oct 2001
Following the launch of its City of London ("CLOUT") and West End ("WELPUT") property unit trusts earlier this year, Schroder Property Investment Management Limited ("Schroders") today announced the launch of its latest property investment vehicle, Gresham Property Partners, L.P. ("Gresham/the Partnership").
Gresham, which is a 7 year Limited Partnership, has been launched with £66 million of equity already committed by four founding investors. This includes an overseas pension fund (CDP Capital - one of the real estate arms of Caisse de dépôt et placement du Québec), a UK corporate pension fund, a UK property unit trust and a Channel Islands investment subsidiary of Schroders PLC. There will be a second closing in December 2001, when up to £34 million of further equity can be admitted. Prior to the start of formal marketing, terms have already been agreed with a UK local authority pension fund for some of this amount. The balance of Gresham's capital will be made up of debt which will be raised as and when investments are made.
Gresham has been designed to generate a high return on equity over the life of the Partnership. This will be achieved through opportunistic stock selection, active asset management and the prudent use of debt. Assets acquired are likely to consist of standing investments and developments; interests in shared ownership vehicles; joint ventures with specialist managers and developers as well as securities in quoted and unquoted property related companies.
Schroders, which is responsible for managing Gresham, will adopt a generalist investment philosophy, targeting any sector of the market where sufficiently attractive returns can be expected. Where a specialisation is required to optimise these returns, Gresham may invest alongside an appropriate joint venture partner.
Joe Froud, the Schroders director responsible for the launch said:
"Our track record illustrates the added value that can be created by investment in more entrepreneurial property projects and Gresham is designed to provide investors, who do not have the resources to do this for themselves, with indirect exposure to a pool of such projects."
We are excited by the prospect of having such a flexible pool of capital at a time of limited property market liquidity and anticipate the emergence of some interesting investment opportunities over the coming 12 to 18 months."
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