Standard Life Investments has announced the launch of a new commercial real estate lending fund, designed for institutional investors seeking an income of 5-6% with limited capital risk. The fund will invest in a portfolio of senior commercial real estate loans secured against UK-based commercial real estate assets. The Standard Life Group Pension Scheme has already invested £100 million in the fund.
SLI head of global real estate, David Paine, said: “We believe that real estate debt is a compelling investment opportunity, offering investors access to a funding market which is undergoing structural change. Real estate debt can also be a valuable additional element when constructing portfolios and can assist clients by forming part of an overall liability-matching strategy.”