Scottish Widows is on the brink of a £400m investment drive into continental Europe.
The UK institution is putting up £150-200m, which it will gear up to £400m, in order to invest in office and industrial property in Europe. The cash is believed to be part of an increased weighting for property rather than being redirected from UK investments.
Scottish Widows is understood to be targeting office developments in Spain and Germany, concentrating on Madrid and Frankfurt, as well as on industrial property in France. Widows bought a 9,435m2 (101,561 sq ft) light industrial and office scheme in Carrieres-sur-Seine near Paris last year.
Jones Lang LaSalle and King Sturge are understood to have advised Widows on its strategy. Widows joins other UK institutions which are breaking out of the country. Royal Bank of Scotland is setting up a European fund, comprising £1bn of equity and debt to invest across all sectors (Finance, 18 October).
And Equitable Life has recently stepped up investments in Europe via its investments in ProLogiss European Properties Fund, Praderas European retail fund and the Schroder European Property Fund.
The three newcomers will be joining Standard Life an exception for the past five years during which it has invested mainly in Paris, Brussels and most recently Spain. The fund is understood to be considering taking a more structured approach to its acquisitions.
Prudential has also carried out research into the European market, which is behind the UK in the property cycle and thus considered to be in line for more growth. Scottish Widows was not available for comment.
EGi News 04/11/00
