Standard Life Investments (SLI) has unveiled plans for a new closed-ended pan-European real estate recovery vehicle for the advisory market. The UK property fund manager aims to raise up to £75 mln in equity for the fund and through borrowings will seek to leverage the property portfolio by 60% to target a gross asset value of £180 mln (EUR 198 mln).
Standard Life Investments (SLI) has unveiled plans for a new closed-ended pan-European real estate recovery vehicle for the advisory market. The UK property fund manager aims to raise up to £75 mln in equity for the fund and through borrowings will seek to leverage the property portfolio by 60% to target a gross asset value of £180 mln (EUR 198 mln).
Standard Life Investments Property Recovery Fund will take the structure of a five-year limited partnership (LP), and will represent the fund manager's first LP offering to the advisory market.
Managed by property fund manager, Will Fulton, the vehicle aims to deliver an annualised return of 12% net of taxes, charges and other liabilities. It will target opportunistic commercial properties across Europe, including the UK.
'The fund has been specifically structured to provide professional investors with the opportunity to capitalise on our expectations for a recovery in property market returns,' said Barry MacLennan, Investment director at SLI. 'On a range of measures, we believe that commercial property is currently attractively priced and we would expect it to be of particular interest to tax-exempt investors, for example via SIPP and SSAS products.'
