Schroders is to convert its £1.2bn flagship UK property fund to a property authorised investment fund (PAIF) after securing approval from investors.
The Schroder Exempt Property Unit Trust (SEPUT) will be renamed Schroder UK Property Fund after the conversion takes place on 31 July.
Ian Mason, SEPUT fund manager, said: “We see the conversion to a PAIF as a significant step forward for SEPUT. Existing investors will benefit from a UK fund structure authorised by the FSA. It will be authorised as a qualified investor scheme, which means it will not only continue to be open to our existing investor base, but also to other professional investors such as insurance groups, discretionary asset managers and overseas institutional investors.
“We are grateful to our investors for their patience while we repositioned the portfolio. This has allowed the team to build a defensive portfolio with good-quality property which today’s tenants want to occupy. The aim is now to ensure that the rental income derived from the portfolio continues, that the property continues to be let to financially secure tenants and that vacancy rates are kept low. This will help us to provide a secure and long income stream for our investors at an attractive yield relative to other asset classes.”
Schroders has £199.6bn under management as of 31 March 2012.
sophia.furber@estatesgazette.com
