Fiera Real Estate Long Income Fund

Investment Approach

The Fiera Real Estate UK Long Income Fund (FRELIF) is an open-ended real estate investment fund that launched in 2009 and became open-ended in 2016. It focuses on acquiring assets with a core risk profile.

The investment objective is to provide Fund Investors with a target level of income together with the potential for capital growth, by investing in a diversified low-risk portfolio of primarily commercial real estate properties throughout the UK.

The vehicle is targeted to deliver a net 4 – 4.5% income return*, via quarterly investor distributions.

*Target rates are not guaranteed.

Fund Fact Sheet

Key Strategies

The fund focuses on:
  • Core assets: Lease duration of 20 years+ at acquisition.
  • Income focus: Indexation and fixed income minimum rental uplifts within leases.
  • Regional diversification: Pan UK focus.
  • Strong tenants: Substantial financial strength of principle tenants.

Themes

The vehicle benefits from the long term market trends of:


Technological change affecting real estate use and service

Long term demographic growth driving demand

Urbanisation focusing demand

Low fixed income yields

These themes exploit Fiera Real Estate’s vertically integrated business model, combining investment management with an operating platform of 10 specialist property companies across the UK providing superior access to stock across the market.

About the Fund

Investment strategy is focussed on acquiring assets with a core risk profile. All assets must display at least three of the following core characteristics at the time of acquisition:
PROPERTIES LOCATED IN THE UK
Properties which are well located in established commercial markets that display a good degree of liquidity.
MODERN INSTITUTIONAL GRADE BUILDINGS
Good quality modern properties built to an institutional grade.
ASSETS WITH RENTAL GROWTH OPPORTUNITIES
Assets which offer either neutral indexation or market rented or under rented, and therefore offer scope for rental income growth.
WELL LET TO A STRONG/ESTABLISHED TENANT(S)
Targeting asset acquisitions let to strong tenants with an average income weighted unexpired lease term of typically 15 years or more.
AUM by Sector*
INDUSTRIAL 45.0%
RETAIL WAREHOUSE 16.0%
RETAIL 16.0%
OTHER 13.0%
OFFICE 10.0%
Total 100.0
AUM by Region*
SOUTH EAST 21.0%
WEST MIDLANDS 16.0%
SCOTLAND 14.0%
NORTH WEST 14.0%
EASTERN 13.0%
YORKSHIRE & THE HUMBER 11.0%
SOUTH WEST 6.0%
NORTH EAST 3.0
WALES 2.0
Total 100.0
*Data taken from FRELIF as at 30th September 2020.

Our Investment Philosophy
Our deep understanding and expertise in the Real Estate asset class drives our strategy, investment approach and team configuration.

Unique Access to Deals
Ownership stakes in property companies gives access to the majority of deals in UK, on & off-market.

Extensive Granular Network
Geographic focus of our 10 property companies supports the execution of business plans.

Long Term Trust
27-year track record of creating value from an established management team.

ESG
Heavy focus on social responsibility, sustainability and governance. Signatory UNPIRI and GRESB.

Aligned & Entrepreneurial
Co-Investment alongside clients at every level ensuring that interests are aligned.

Evaluating Risk & Return
Rigorous approach to risk management, portfolio construction and diversification.

Contact

Alex Price

Head of Fiera Real Estate, UK
02074095500

Rupert Sheldon

Head of Core REIM, UK
02074095500