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Corporate overview

Schroders Capital has managed real estate since 1971 and is one of Europe’s largest managers of real estate with €23bn/$27bn of AUM as at 30 June 2021. Sustainability and impact considerations are at the core of every investment we make.

Headquartered in London, we have over 220 staff worldwide with dedicated investment and asset management teams located across Europe in London, Manchester, Frankfurt, Munich, Zurich, Paris, Brussels, Stockholm and Luxembourg. We also have real estate offices in Asia (Hong Kong, Singapore and Shanghai) and North America (New York). The breadth of our coverage provides us with local insights and in-house asset management skills that are not com- monly available in real estate firms.

We have invested in our talent and in true operational excellence which we believe is crucial to manage each asset as if it is a business by itself, providing services to tenant clients and driving long-term sustainable income and value to our investors.

We aim to give clients access to the best real estate strategies, benefitting from long-term trends and exploiting short-term disruptions, in a form and with governance that match our clients’ risk and income/ return appetite. These range from defensive, income-focused strate- gies including RE debt through to actively managed, specialist, value- add strategies in the hotel and social supported housing sectors for example. Clients can then access these strategies through open and closed-end private funds, listed REITs, specialist partnerships, joint ventures and/or separate accounts.

Our parent company, Schroders plc, is one of Europe’s largest listed asset management firms with almost $1trn AUM.

Preferred strategies in Europe Q4 2021

INDUSTRIAL:

  • Urban logistics
  • Light industrial sale &and leasebacks
  • Modern logistics space along the key corridors
  • Logistics outside main corridor and cold storage
  • Industrial estates.

OFFICE:

  • Grade A offices in: Amsterdam, Utrecht, Luxembourg, Lyon, Paris, Bristol, Cambridge, Leeds, London, Manchester, Oxford, Copenhagen, Stockholm or offices near strong regional cities with strong universities (eg, Malmo/Lund, Uppsala), Berlin, Hamburg, Frankfurt, Munich, Zurich and Geneva.

RETAIL:

  • Big box retail parks
  • Mixed use re-development of retail in affluent towns
  • Food-anchored retail schemes
  • DIY-driven retail parks.

OTHER:

  • Residential in towns and cities with growing populations
  • Data centres in core hubs
  • Hotel re-positioning
  • Social supported housing
  • Retirement villages
  • Self-storage.

Investment principles & strategy

Schroders Capital is one of Europe’s largest real estate managers with deep real estate expertise on the ground across real estate sectors. The business aims to deliver superior risk-adjusted returns, portfolio diversification and positive impact in investors’ portfolios.

  • Research-led: Dedicated in-house research team with access to the wider Schroders Group’s equity and fixed income market analysis, focused on identifying investment strategies based on strong fundamentals, benefitting from structural change and/or temporary supply demand imbalances.
  • Local knowledge combined with global reach: Strong real estate expertise on the ground in all major real estate markets, combining global views with local insights to source (off market) investments opportunities and consistently assess risk/return to underwrite the best risk weighted investments in the respective markets.
  • Active management: Each asset is actively managed based on tailored business plans which are constantly reviewed and fine-tuned throughout the life of the investment to generate optimum returns for investors. Value creation is generated through (re)development and lease optimisation combined with rigorous focus on operational excellence, enhancing sustainability and performance.
  • Real estate with impact: Sustainability and positive social impact are inte- gral to the investment process, with industry recognition from GRESB, Edie, EPRA BPR,PRI and BBP. Schroders’ real estate investments look to generate a positive impact on local communities, the environment, and the wider society in the best interest of all stakeholders.
  • Hospitality mindset: Schroders Capital applies a hospitality mindset to services, operations and lease terms, managing every asset as though it is a stand-alone business. This means optimising services, making efficient use of resources and adjusting lease terms to allow occupiers’ businesses to thrive and create sustainable income and long-term value for the asset.

Part of an institutional platform with a disciplined approach to reviewing risk and impact; uniquely positioned to leverage the comprehensive range of investor services provided by Schroders Group.

Strategic corporate development

Schroders Capital has managed real estate since 1971 and continues to develop and diversify its business and offerings to clients. In July 2020, Schroders Capital acquired a majority stake in Pamfleet, a 20-professional, value-add real estate investment manager with $1.1bn of assets under management headquartered in Hong Kong and with offices in Shanghai and Singapore. The acquisition reinforced Schroders Capital’s real estate capabilities, building on other recent acquisitions such as Blue Asset Management in 2019, a 20-professional specialist asset manager of real estate assets in the DACH region, and Algonquin in 2018, a 30-professional pan-European hotel investment and asset management specialist . 

COMPLIANCE STATEMENT

Information provided as at 30 June 2021

Risk Considerations

The value of investments and the income from them may go down as well as up and investors may not get back the amounts originally invested. Property-based vehicles invest in real property, the value of which is generally a matter of a valuer’s opinion. The price of shares and the income from them may fluctuate upwards or downwards and cannot be guaranteed. It may be difficult to deal in the shares of property-based vehicles or to sell them at a reasonable price because the underlying property may not be readily saleable, thus creating liquidity risk.

Important Information

This information is not an offer, solicitation or recommendation to buy or sell any financial instrument or to adopt any invest- ment strategy. Information herein is believed to be reliable but we do not warrant its completeness or accuracy. Any references to securities, sectors, regions and/or countries are for illustrative purposes only.

Any data has been sourced by us and is provided without any warranties of any kind. It should be independently verified before further publication or use. Third party data is owned or licenced by the data provider and may not be reproduced, extracted or used for any other purpose without the data provider’s consent. Neither we, nor the data provider, will have any liability in connection with the third party data. The material is not intended to provide, and should not be relied on for accounting, legal or tax advice. Reliance should not be placed on any views or information in the material when taking individual investment and/or strategic decisions.

Schroders has expressed its own views and opinions in this document and these may change. Past Performance is not a guide to future performance and may not be repeated. The value of investments and the income from them may go down as well as up and investors may not get back the amounts originally invested. Exchange rate changes may cause the value of any overseas investments to rise or fall.

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Schroder Real Estate Investment Management Limited, 1 London Wall Place, London EC2Y 5AU. Registration No 1188240 England. Authorised and regulated by the Financial Conduct Authority