PropertyDec 21 2015

Schroder real estate trust to shut

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Schroder real estate trust to shut

The Schroder Global Real Estate trust is close following a “strategic review” by its board which decided the closed-ended vehicle was too small.

The investment trust run by Schroders said the decision to close came after the board decided it lacked the critical mass to compete in the market, with this affecting future demand for its product the trust’s liquidity and discount.

A liquidation scheme will now be put to shareholders which will allow investors to transfer into an open-ended option run by Schroders, or receive cash.

A statement to the market said: “The Company has performed well both in absolute and relative terms and the directors continue to believe in the investment proposition.

“However, they also recognise the difficulties of attracting long term demand for a closed-ended vehicle which is perceived to lack sufficient critical mass, impacting upon liquidity in the company’s shares and the discount at which they trade.

“Notwithstanding extensive marketing efforts, the directors conclude that their aspirations to grow the company are not realisable in current market conditions.”