Standard Life Investments has launched a new UK senior real estate debt fund.
The Commercial Real Estate Debt Fund already has £100m of seed equity from the Standard Life Group pension scheme, and is now raising capital from institutional investors.
The fund will target an annual return of 5-6% over 10 years.
The launch comes a year after Standard Life first announced plans to enter the UK real estate debt market, having secured £250m from its parent to invest in the asset class.
Neil Slater, Standard Life’s head of product finance and structuring, real estate, will manage the fund.
The institution has also raised €300m (£235.5m) for the European Investments Real Estate Club, a closed-ended real estate investment, from institutional investors in Canada, Thailand, the Middle East, the Netherlands and the UK.
The vehicle is geared to 50%, and has already invested 60% of its capital in assets in France, Denmark and Germany.
The core-plus vehicle targets a 13% IRR.
