Schroders is hoping to raise £150m for its forthcoming income-focused European Real Estate investment trust.
The trust will target property in major cities of continental Europe. A note from investment trust broker Numis said six potential initial assets had been identified in Paris, Berlin and Brussels with an aggregate value of €100m (£74.6m) and average valuation yield of 6 per cent.
The trust will apply conservative gearing to enhance returns including overall fund gearing capped at 35 per cent loan-to-value using fixed-rate senior debt. It will aim to pay a fully covered yield of 5.5 per cent per year.
The management team has been canvassing interest in the trust since January 12.
A spokesperson from Schroders said: “Schroder Real Estate is continuously looking for market opportunities on behalf of its clients. This ensures that we offer the very best service to our clients in all market conditions.”