Member Article

Newly launched Trust arm of Schroders PLC begins life with €37.5m Paris property acquisition

Schroder European Real Estate Investment Trust Plc has announced a €37.5m acquisition of a Paris-based office property.

Managed by London-based Schroder Real Estate Investment Management Ltd, part of British multinational asset management company Schroders PLC, the new trust was launched last month to invest in commercial real estate across Europe.

The trust’s aim will be to provide shareholders with a “regular and attractive” level of income return and the potential for long-term income and capital growth.

Today’s announcement marks the Trust’s first investment, situated in Boulogne-Billancourt, a densely populated and established office area in western Paris.

The acquisition is fully in line with the strategy to acquire institutional grade, income producing assets in major cities let off sustainable rents and in supply constrained locations.

Commenting on the acquisition, Sir Julian Berney, Non-Executive Chairman of the Group, said: “We have secured the Group’s first investment soon after launch. The acquisition is fully in line with the strategy to own institutional grade, income producing assets in major cities”.

Tony Smedley, Head of Continental European Investment at Schroder REIM, commented: “Paris is the largest and most liquid commercial real estate market in Continental Europe and a key target market of the Group.

“This is a strong start to the deployment of initial equity and consistent with our strategic objective to acquire assets with growth potential, let off sustainable rents and in supply constrained locations”.

The purchase is expected to complete at the end of the March 2016.