Schroder Property Managers hopes to reach a final closing for the Columbus UK Real Estate Fund by the end of next month. The value-added fund, run by Joe Froud at Columbus Capital Management, has spent 80% of its initial £85m of equity after agreeing to buy a £50m portfolio with two joint-venture partners.
Schroders’ property head William Hill said the fund’s total target equity is £150m. The property placement agent team at Greenhill bank, headed by Fredrik Elwing, is advising. The fund bought central London offices 73/75 Strand and Aldermary House in Queen Street in the City, with British Airways Pension Fund; and Langney Shopping Centre in Eastbourne, with London & Associated Properties.
The vendor was the receiver to Stockland Ventures and the overall yield was close to 7%. Froud said: “This deal suits our model of combining asset management with significant capital investment. We have acquired 16 assets for the fund over the past 12 months.” Schroders is also raising capital for the Cairn Property Debt Fund, a pan-European core/core-plus OPCI fund and an open-ended securities product.