Fund Management
What's New In Investments, Funds? - Sandstone, Schroders

The latest offerings in investments, such as funds and structured products, and other notable developments.
Sandstone
UK private property investment and management company Sandstone has launched the
Sandstone Residential REIT, focused on traditional residential
property across ten cities in the UK.
The trust will target family offices, fund managers, charities
and private clients using SIPPS and wishing to invest in the UK
residential market "in a hands-off tax-efficient way." With a
maximum of 50 per cent gearing, Sandstone is projecting average
annual returns of 17 per cent. Existing clients will also be able
to move their properties into the REIT, the firm said.
The UK’s property market grew at its fastest pace since 2007 to
March this year. House prices also accelerated to the highest
annual growth rate in over six years for 2020.
Sandstone focuses on property sourcing, renovation, furnishing
and ongoing rental and management, primarily in the student
accommodation sector, which it says has remained resilient during
the pandemic. Occupancy in the portfolio has been above 95 per
cent, and rental income rose by 12 per cent in 2020, the firm
said.
“There are very few residential REITS in the UK, and our new
Sandstone Residential REIT has been created with large
institutional investors in mind,” CEO Peter Grant said.
“It offers investors exposure to a really attractive asset class,
which combines low risk and high returns.” It also dovetails with
the UK government’s aim to help professionalise the
private-rental sector, he said.
Schroders
Schroders Capital, part of UK-listed Schroders said yesterday
that its debut discretionary pan-European operating hotels fund
has beaten its €500 million ($594 million) hard-cap target with
its final close, reaching €525 million.
Investors encompassed some of Europe’s largest insurance
companies, primarily from France, the Netherlands and Finland, as
well as a sovereign wealth fund from the Middle East, the firm
said.
Assuming what the firm called “moderate leverage,” the fund has
around €850 million of capital to invest.
The Schroders Capital real estate hotels team consists of almost
40 hotel investment and asset management specialists located
across Europe.
With more than $66.5 billion assets under management, Schroders
Capital offers a range of investment strategies, including real
estate, private equity, secondaries, venture capital,
infrastructure, securitised products and asset-based finance,
private debt, insurance-linked securities and BlueOrchard (Impact
Specialists).