Standard Life Investments has announced the launch of a new commercial real estate lending fund.
Standard Life Investments has announced the launch of a new commercial real estate lending fund.
Structured as a limited partnership, the Commercial Real Estate Debt Fund is aimed at institutional investors seeking an income with limited capital risk. The fund will invest in a portfolio of senior commercial real estate loans secured against UK-based commercial real estate.
The fund has already secured £100 mln (€127 mln) from the Standard Life Group Pension Scheme and will aim to deliver a 5-6% per annum return over 10 years. Neil Slater will act as fund manager.
'We are delighted to have launched the new fund to meet client demand for increased portfolio diversification,' David Paine, head of global real estate at Standard Life Investments, said. 'We are encouraged by how Standard Life Investments has been received in the market as a commercial real estate lender. Since commencing the UK lending programme last year we have looked at over 70 transactions and currently have over £270 mln invested or in documentation.'
