Standard Life launches two global REIT funds

Standard Life Investment, one of the largest property fund managers in Europe, has announced the launch of two new global property funds aimed at institutional and retail investors in the UK and Europe.

The Global REIT Fund (OEIC) for UK investors, and the Global REIT Focus Fund (SICAV) for the European markets will invest in REITs or securities and companies engaged in the real estate activities on a global basis. Both funds will be managed by Andrew Jackson and Svitlana Gubriy, and will aim to outperform the FTSE EPRA/NAREIT Global Index by 2% per annum.

The fund manager said in a press release that the OEIC qualifies for ISA investment and PEP transfers, and it is also available to Life and Pension clients and for direct investment in both the retail and the institutional markets. The fund will be available to both UK institutional and retail investors from January 16, 2007.

The European fund SICAV will be launched on January 25, 2007, and will be structured as a sub-fund forming part of Standard Life Investments' Luxembourg-based SICAV range.

Standard Life's managing director Alex Watt said that the launch of the two funds is a strategic move that anticipates the enhancement of the global REIT market. 'The introduction of REIT legislation in the UK and Germany in early 2007 will significantly extend the existing global REIT market. In response to this, we are launching two global REIT funds'.

'The funds will take a largely unconstrained approach to regional asset location. This ensures we can invest in markets and property sectors where the best investment opportunities exist, rather then being tied to one region or market', added Ale Watt.

The UK and Germany introduced the real estate investment vehicles on January 1, 2007. France updated in late December its own REITs, creating the SIIC 4, and Italian REITs will come into force on June 30, 2007.