Friday, 27 March 2015
New investor commits €221 mln to WELPUT (UK)
An international institutional investor has committed £162 mln (€221 mln) to WELPUT, through the secondary market, successfully matching the units made available through the recent redemption window.
The Schroder-managed central London office trust received redemption requests last year equivalent to 16.5% of its net asset value following the modernization of the Trust. This modernization provided for a more open ended structure and an expansion of its investible area across London to benefit from changing occupier trends. Many of the redemption requests were from long term investors top slicing their existing holdings following consistent strong performance. Initial demand for the units has come from European institutions, although there has also been strong interest from Asia.
The Property Adviser to WELPUT is Grafton Advisors (2006) LLP, a wholly-owned subsidiary of Quintain Estates and Development Plc. WELPUT has been the top performing UK office fund over the past five.
Duncan Owen, Head of Schroder Real Estate, said: “We have received a positive reception to WELPUT from both European and Asian investors. Demand for central London offices from international investors remains unsatisfied and there also remains interest for further new investment. The combination of WELPUT’s strong management team, Schroders brand and excellent performance track record, scale and established liquidity support the Trust’s attraction. The Trust's ongoing capital base now provides the opportunity to make further acquisitions to diversify holdings, enhance returns and importantly to invest further in the current portfolio with refurbishments and active management.”
Source: FTI Consulting