21st Dec 2015 11:10
LONDON (Alliance News) - Schroder Global Real Estate Securities Ltd on Monday proposed placing the company into liquidation after realising it cannot grow in the current market.
The closed-ended investment company is giving shareholders the option of cashing out of the business or retaining their stakes by giving them exposure to open-ended vehicles managed by Schroder.
Schroder Global shares were up 4.0% to 125.95 pence per share on Monday morning.
The trust said it has performed well since adopting a new investment policy with a new investment manager back in September 2014, but said it can not achieve its aspirations of growing the company without mass marketing efforts.
"Since the appointment of Schroder Real Estate Investment Management Limited as the company's manager and the adoption of a new investment strategy in September 2014, the company has performed well both in absolute and relative terms, and the directors continue to believe in
the investment proposition," said the trust.
"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," said Schroder.
"Notwithstanding extensive marketing efforts, the directors conclude that their aspirations to grow the company are not realisable in current market conditions," it added.
Schroder will put forward a scheme for liquidation for shareholders to approve, with a circular set to be sent early in 2016.
"Accordingly, a scheme for liquidation will be put forward for the approval of shareholders and the scheme is expected to provide an opportunity for shareholders to retain their exposure to the same asset class through one or more open-ended vehicles managed by Schroder Real Estate Investment Management Ltd or, should they so elect, to receive cash," said Schroder.
By Joshua Warner; [email protected]; @JoshAlliance
Copyright 2015 Alliance News Limited. All Rights Reserved.
Related Shares:
SGRE.L