Schroders and Pillar are widening the investor base of their £2bn property unit trusts.
New investors will join the Hercules Unit Trust, which Pillar and Equitable Life created last year from their Hercules limited partnership, because Equitable is believed to be selling part of its 25% stake.
And Schroders, which manages both HUT and CLOUT – Pillars £600m offshore trust specialising in City offices – has appointed Jones Lang LaSalle corporate finance to find new investors for CLOUT.
Adrian Little, who looks after Equitables interest in HUT, was not available for comment. But it is believed that the fund – now part of the Clerical Medical arm of HBOS – wants to reduce its exposure to indirect property investment vehicles.
A source pointed out that a unit trust is easier to sell out of than the limited partnerships which make up the rest of Equitables indirect investments. It is thought that up to four new investors could come in as a result of the sale, increasing the number to nine.
JLL will work with existing adviser HSBC to find investors who can bring capital or more property, particularly buildings with refurbishment opportunities or other angles.
The pair will target private banking clients and overseas investors as well as UK funds. The FSA document will be issued next month after approval by the Jersey regulator.
Schroders and Benchmark have also appointed HSBC to market WELPUT, the £300m unit trust which owns property in the West End. They will target private buyers.
See Saturday’s Estates Gazette for a fuller version of this story.
EGi News 22/02/02
