Schroder Real Estate has launched a European real estate investment trust that will be listed on the London Stock Exchange (LSE) and on the Johannesburg Stock Exchange (JSE).
Called the Schroder European Real Estate Investment Trust (SEREIT), the REIT will provide investors liquid access to key continental European markets focusing on investment into targeted growth cities.
The trust has initially raised £107.5m with the objective to grow the trust to a similar size as its UK equivalent SREIT.
It will also allow investors to invest in an actively managed fund, targeting real estate with strong fundamentals in winning cities.
Schroders aims to invest up to 10%, or a maximum of £15m in the new fund, in an effort to provide alignment of interest with shareholders.
The trust will target a fully covered dividend to shareholders of 5.5% per annum once the initial capital is fully invested and debt is drawn down. It will have debt at a maximum level of 35% loan to value (LTV).
Schroders global head of real estate Duncan Owen said: "With the already strong performance of SREIT, EREIT and ImmoPlus, this new launch has strengthened our position as the leading investment manager of listed real estate trusts.
"We are now the only manager to offer UK, Swiss and continental European real estate investment trusts. Through this process we have developed good new relationships with a large number of South African institutions and wealth managers; we very much look forward to working with them going forward."