Schroder European REIT is a newly-established, closed-ended real estate investment trust aiming to invest in commercial properties in cities of Continental Europe which are expected to exceed national GDP growth averages and where pricing and rental growth forecast are considered to be attractive.

The fund was launched in December 2015, and Schroder European shares today have a primary listing on the London Stock Exchange. The group has a secondary listing on the Johannesburg Stock Exchange (JSE), giving investors in South Africa an opportunity to buy into the European market.

The fund is a product of Shroders Global, an asset manager with US$459 billion worth of assets under management from retail investors, financial institutions and high net-worth clients around the world.

Schroder European REIT aims to draw on its parent company’s long history of managing real estate investments in Europe, through 100 real estate staff located in key cities. As a newly-listed company, investors don’t yet have a Schroder European share price history on which to base a decision to invest.

Using its extensive investment expertise, the trust will buy into specific cities with large, liquid real estate markets with superior growth potential, investing in a portfolio of assets including offices, retail and leisure developments.

The company listed 150 million shares on the London Stock Exchange, and €166 million capital was raised. Around €100 million of this has been used for five property investments in the office and retail sectors of Paris, Hamburg, Berlin, Frankfurt and Stuttgart. The portfolio demonstrates some good performance fundamentals, boasting a 100% occupancy rate, an average unexpired lease term of 7.5 years and an initial income yield of 5.9%. Once all capital is fully invested, dividends are forecast to stand at 5.5%. Total returns are expected to be between 7% and 9% per year until 2019.

The company is continuing to look at other investment opportunities, initially focusing on its core markets of Germany and France, before diversifying by location, sector, size, lease, duration and tenant concentration. Targeted sectors include office, retail, logistics, leisure investments and multiple-use assets. 70% of cash will be used to expand the portfolio, with the remaining 30% used for value-added opportunities such as refurbishments and changes of use.

Investor demand for European real estate is currently highly competitive, and there is no shortage of rand hedge property stocks for JSE investors to buy. Schroder European REIT share price should benefit from a management team with extensive, hands-on experience with managing real estate assets, which should stand it in good stead going forward. With little history to go on, it is difficult to evaluate the true potential of Schroder European REIT shares, but the shares are worth a look for adventurous investors.

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We have made it simple to buy JSE listed firm shares online. The easiest way to buy Schroder European REIT Group shares or stocks is to; start by submitting the ‘BUY THIS SHARE’ form. Next, one of our experienced and certified stock brokers will personally get in contact with you to discuss your custom stock request. Finally, a stock advisor will confirm the amount of shares you are looking to invest in Schroder European REIT Group and assist you with the setup and management of your stock portfolio account.

1. Start by Filling in the BUY THIS SHARE form.
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