Long lease fund raises £1 billion in assets for SLI

Standard Life Investments (SLI) has announced that it long lease property fund has now taken over £1 billion in assets since 2003 when it was launched.

SLI says the fund was the first of its type, and holds a diversified portfolio of UK real estate assets with an average unexpired lease term of 23 years – double the average for the UK market as a whole. It added that 73% of the fund’s income is subject to inflation-linked or fixed incomes, which reduces return volatility and provides income growth and sustainable yields for investors. The chief executive of the Superannuation Arrangements of the University of London, Penny Green, commented: “We are very pleased to have selected Standard Life Investments and their long lease property fund. Their fund has proved to be a winning investment proposition and one that has helped our scheme to better achieve our investment ambitions.”

SLI long lease property fund manager, Richard Marshall, said: “Since inception, the fund has delivered a return of 7.5% per annum, net of fees, during a period of extreme turmoil in the real estate market. The fact that many of our clients in the fund have steadily increased their allocations is testament to the continued attractions of our portfolio and the fund remains open for new investment.” He added that the fund enables institutional investors to add value over a traditional bond allocation, which assists with the payment of deferred and pensioner liabilities.