FINANCE: Standard Life Investments has announced the launch of 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 now raising capital from institutional investors.
The fund will target an annual return of 5-6% over 10 years.
Standard Life announced plans in November last year to enter the UK real estate debt market, having secured £250m from its parent to invest in the asset class. This will be the company’s debut real estate debt fund in the UK.
Neil Slater, head of product finance and structuring, real estate, will manage the fund.
The institution has also raised €300m for the European Investments Real Estate Club, a closed-ended real estate investment, from institutional investors from Canada, Thailand, the Middle East, the Netherlands and the UK.
The fund 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.
