Schroder European Real Estate Investment Trust subsidiary lists on the JSE

Posted On Sunday, 13 December 2015 12:32 Published by
Rate this item
(0 votes)

Schroder European Real Estate Investment Trust becomes the latest offshore property fund to list on the JSE, raising about R2.4bn in its initial public offering.


Schroder European Real Estate Investment Trust (Reit) has become the latest offshore property fund to list on the JSE, raising about R2.4bn in its initial public offering.

Schroder, which was established by multinational property group Schroder Real Estate, offers local investors exposure to European markets, which are expected to do well in the next year.

The Reit is the eighth property company to list on the stock exchange this year.

“The Schroder European Reit will offer investors liquid access to key continental European markets, focusing on investment into targeted growth cities.

“The initial placing has raised £107.5m …,” the company said.

Schroder will invest up to 10% of the funds raised, or a maximum of £15m, in the fund. A fully covered dividend to shareholders of 5.5% per annum is targeted once the initial capital is fully invested and debt is drawn down.

The investment trust will have debt at a maximum level of 35% loan to value.

Debt-funding rates in continental Europe are currently offering an attractive spread to yields.

One analyst said Schroder would be a welcome addition to the JSE.

“I definitely see space for them, as Schroder is a very competent asset management company with an experienced management team and board based in the geographical area in which they invest.

“The company has a solid history and franchise in their home market and have an advantage over non- European specialists operating in their core markets,” said Alternative Real Estate Capital Management fund manager Garreth Elston.

“They should be able to leverage their local experience to deliver good returns,” he said.

A total of 23 companies have joined the JSE this year, with the real estate sector being by far the most active in terms of new listings.

source Business Day

Last modified on Sunday, 13 December 2015 15:28

Most Popular

Balwin Properties and ABSA launch South Africa’s first green home loan

Mar 13, 2020
Apartment 71933
JSE-listed Balwin Properties Limited (Balwin Properties or the Company) and Absa Group…

Spear REIT launches innovative self-isolation campaign for returning travellers in Cape Town, South Africa to combat COVID-19:

Mar 18, 2020
Double Tree Op
JSE listed Spear REIT Limited, the owner of the Double Tree by Hilton Cape Town, is the…

Financial Fitness – Is this the right time to buy property?

Mar 20, 2020
Governor Lesetja Kganyago SARB1
With the South African Reserve Bank’s announcement of interest rates cut of 100 basis…

Timeous reduction in the repo rate – property stands the test of time

Mar 19, 2020
Andrew Golding Golding Property Group
Against the backdrop of the unprecedented times we find ourselves in, today’s (19 March…

Precautions, planning and preparation - the real estate agent's guide to weathering the Covid19 storm

Mar 16, 2020
With the Corona Virus now in SA and beginning to cause widespread panic, we are not only…

Please publish modules in offcanvas position.