London-listed Local Shopping REIT has joined forces with UK investment manager Schroders to create a £60 mln (EUR 72 mln) unlisted fund to invest in convenience store properties in the UK.
London-listed Local Shopping REIT has joined forces with UK investment manager Schroders to create a £60 mln (EUR 72 mln) unlisted fund to invest in convenience store properties in the UK.
The new vehicle, Local Retail Fund, will be an English Limited Partnership managed by Schroders and advised by Local Shopping REIT, a specialist in the niche market of convenience and local shopping.
Structured with a Jersey PUT feeder, the fund will be ungeared and have an income-based focus. LSR will have a strong alignment of interest through a £5 mln co-investment and a performance-related fee basis in addition to base management fees.
The fund will have a five-year life and target convenience retail stores, such as Tesco Express and Sainsbury's Local. The expected target investment of £1 mln will provide a diversified portfolio and an estimated average net initial yield of 6.5%.
