Schroders Flashcards
Introduce yourself/walk me through your cv
- I’m Abbas and I’m a second year at LSE Studying Economics and Economic History
- Heavily involved and led charitable groups for years in the UK and even in Africa through loans to hospitals and microfinance to the community.
- Seeing the impact of fundraising I took an interest in the healthcare industry working at the HQ of MACC Care a popular care home provider, Healthcare department of Downing an investment firm in London. Provided me with business specific knowledge and interpersonal skills but for me it lacked the technical skills of a longer finance internship.
- At LSE I’ve carried on this interest in investments through multiple stock pitch competition such as achieving 2nd in the LSE Investment Competition, capitalising on my public speaking certifications, and being chosen as 1 of 4 to the LSE Student Investment Fund from the entire cohort after a very competitive process.
- Confirmed this through my internship this summer at Avington, a boutique that specialises in luxury hotels, where I worked on multiple different deal mandates from such as securing a mandate for an advisory role on an $8 billion sale. Enjoyed the steep learning curve but most enjoyable experience was actually asset management and family office side. Enjoyed the higher responsibility and intimacy with each asset or investment.
In my spare time, as mentioned before, I work a lot in the charitable space as I serve in an advisory role to previous organisations I led and I now run an organisation called Sherpa Mentors, a west-midlands-based mentoring group that has mentored over 120 mentees from low socioeconomic and underrepresented backgrounds. Enjoy football too but even more so from the important financial perspective, following deals such as Chelsea as well as upcoming sagas like Friedkin and Everton.
Why Schroders?
3 main reasons; huge scale and approach!
Scale: Schroders Capital Real Estate is one of Europe’s largest real estate managers managing over 20 billion, benefitting from the huge scale of the wider Schroders firm such as the research capacities as I’ve seen through the investor download podcast the benefits for that for the real assets team are immense.
Approach to Investing SOS
“Hospitality Mindset”:
Seen in the renovation of the Nice hotel, boosting profitability and increasing valuation by EUR20 million a year.
Additionally, during my internship at Avington this summer, a global investment bank for ultra-luxury hotels, part of my role was formulating a weekly deals and hospitality industry newsletter. I saw how insight and utilising multiple branches of a business leads to huge value creation within real estate e.g. M’As D’en Bruno in Barcelona, capitalising on knowledge of winery resorts –> break into the top 100 list of hotels, getting 6th best hotel in the world
Sustainability and Impact:
Kibaha reason for interest in finance, and interest in RE. can have such a physical and immediate impact on people’s lives day to day. Also fits exactly with need in RE, need for ESG compliant space. Schroder Real Estate Investment Trust’s first-of-its-kind brown-to-green investment strategy
What is a real estate asset you are interested in? (hong kong data centre)
“I’m particularly interested in Schroders’ data center asset in Hong Kong. This asset highlights the convergence of strategic location, sectoral trends, and sustainable redevelopment practices, making it a compelling case study for the future of real estate investment.
Firstly, its location near the Hong Kong-Zhuhai-Macao Bridge and major container terminals positions it at the heart of a global trading and logistics hub. This ensures strong connectivity, which is critical for businesses relying on both physical and digital infrastructure.
Secondly, it leverages the growing demand for data centers, driven by trends like cloud computing, e-commerce, and digital transformation. Data centers are increasingly considered core infrastructure, and this asset captures the tailwinds of a sector that continues to grow exponentially.
The value creation strategy of repurposing also stands out to me. By converting an existing structure rather than developing from scratch, the project not only optimizes costs but also aligns with sustainable practices—minimizing waste and utilizing existing urban infrastructure.
Finally, it’s a future-proof investment. The demand for data storage is not only stable but growing rapidly, ensuring the long-term relevance and resilience of this asset. It’s also held as a long-term investment, reflecting Schroders’ confidence in its income generation and capital appreciation potential.
What fascinates me most is how this project aligns financial performance with broader macro trends and environmental goals, embodying what I see as the future of impactful real estate investing.”
What is a real estate asset you are interested in? - Ruskin Square Croydon
I find Ruskin Square, located in Croydon, to be a particularly exciting example of modern real estate investment and development. It represents a forward-thinking approach to urban regeneration and sustainability, which I find inspiring.
Ruskin Square is a 9-acre site that has been transformed into a mixed-use development featuring office spaces, residential areas, and dining facilities. Its proximity to East Croydon Station is one of its key features, offering unparalleled connectivity to Central London in just 15 minutes. This strategic location makes it highly attractive to occupiers, including government entities, and addresses the increasing demand for well-connected, high-quality urban spaces.
What truly stands out about this project is its commitment to sustainability, being an operational net-zero carbon scheme. This aligns with the increasing focus on ESG principles in real estate, catering to occupiers who prioritize environmentally sustainable buildings and complying with evolving regulatory frameworks like the Energy Performance Certificate requirements. Ruskin Square is future-proofed to meet these expectations while delivering high functionality.
From an investment perspective, it showcases an excellent value creation strategy through development. Schroders acquired the site in 2004 and completed the development recently in 2023, highlighting their ability to unlock long-term value through strategic planning and execution. The project’s scale and complexity demonstrate the importance of balancing tenant preferences, location strategy, and environmental considerations in real estate development.
In sum, Ruskin Square exemplifies the type of project I admire: one that integrates sustainable practices with commercial viability, while contributing to urban development and regeneration in a meaningful way.
What is a real estate asset you are interested in - Amsterdam
I am particularly interested in the Bajeskwartier project in Amsterdam. This asset is a remarkable example of how urban regeneration can combine innovation, sustainability, and community development.
The project involves transforming the former Bijlmerbajes prison complex into a 135,000-square-meter mixed-use neighborhood. What I find most exciting is the scale of ambition—it aims to deliver 1,350 new homes, 70 uniquely designed gardens, and a suite of high-quality amenities tailored for modern living, work, and leisure. This transformation not only creates housing but also integrates public spaces and services, making it a vibrant community hub.
From a sustainability perspective, Bajeskwartier embodies the principles of environmental stewardship and adaptive reuse. By repurposing an existing structure, the project minimizes the environmental impact of new construction while also incorporating sustainable design practices. This aligns with the growing focus on ESG considerations in real estate, addressing both regulatory requirements and occupier preferences for greener, healthier spaces.
What also makes this asset compelling is its location in Amsterdam, a city recognized for its strong economy and progressive urban planning. It captures demand from both local and international residents who value sustainability and connectivity. Furthermore, the mix of residential, commercial, and recreational spaces makes it a resilient investment, catering to diverse tenant needs.
Finally, the long-term vision of the project is what resonates most with me. By reimagining a former prison site into a thriving, sustainable neighborhood, Bajeskwartier demonstrates how real estate can be a force for positive urban change. It’s the type of project that not only delivers strong financial returns but also contributes to the broader societal and environmental good, which I believe is the future of impactful real estate investment.
What is a real estate asset you are interested in - Nice
“I’m particularly interested in the transformation of the beachfront hotel in Nice, which exemplifies how strategic asset management and refurbishment can unlock significant value in hospitality real estate.
This asset was acquired in 2017 as an under-managed hotel, and through a hospitality-oriented approach, it underwent a comprehensive refurbishment. Within a year, its valuation increased by €20 million, demonstrating the effectiveness of a well-executed value creation strategy. This remarkable turnaround highlights the potential of identifying underperforming properties and leveraging operational expertise to enhance their appeal and profitability.
The hotel’s beachfront location in Nice is another key feature that appeals to me. As part of the French Riviera, Nice is a globally renowned destination for luxury tourism and business travelers, benefiting from year-round demand. By repositioning the hotel, the investment aligned its offering with the premium expectations of its target market, ensuring a strong competitive position.
Additionally, this project underscores the importance of integrating operational improvements alongside physical refurbishment. Enhancing guest experiences, optimizing revenue management, and focusing on sustainability likely played significant roles in boosting profitability and market value.
What I find particularly inspiring is the strategic focus on transforming a neglected asset into a standout performer in a high-demand market. It’s a perfect example of how real estate investors can create substantial financial and operational value while revitalizing assets to meet modern consumer and industry standards.
This kind of dynamic, hands-on investment approach—combining location strategy, refurbishment, and operational expertise—is what makes this project a standout for me in the hospitality sector.
WHat are the different funds from schroders
Core Funds
Focus: Stable income generation with low-risk properties in prime locations.
1. Schroders Capital UK Real Estate Fund (SCREF)
○ Aim: To provide diversified exposure to high-quality, income-generating UK commercial properties.
○ Strategy: Invests in well-located, prime assets across sectors like offices, industrial, and retail with a focus on liquidity and income stability.
○ Risk Profile: Low.
2. Schroders Capital Global Cities Real Estate Fund
○ Aim: To invest in resilient and high-demand assets in major global cities benefiting from urbanization trends.
○ Strategy: Focuses on high-quality properties in dynamic cities with strong fundamentals to generate stable, long-term income.
○ Risk Profile: Low.
Core+ Funds
Focus: Income stability with moderate capital growth through strategic enhancements.
1. Schroder Real Estate Investment Trust (SREIT)
○ Aim: To enhance property value through sustainability upgrades and active asset management.
○ Strategy: Targets assets that provide current income while benefiting from sustainability enhancements and market repositioning.
○ Risk Profile: Low to Moderate.
2. Schroders Capital UK Real Estate Fund Feeder Trust
○ Aim: To allow investors access to SCREF, focusing on income stability and selective growth.
○ Strategy: Mirrors SCREF’s diversified UK commercial real estate strategy, providing indirect exposure to core UK markets.
○ Risk Profile: Low to Moderate.
Value-Add Funds
Focus: Active management to reposition underperforming assets for income and capital growth.
1. Schroders Capital Real Estate Impact Fund (SCREIF)
○ Aim: To deliver positive social and environmental impact alongside financial returns.
○ Strategy: Focuses on addressing housing shortages and regenerating urban areas, targeting capital appreciation and impact.
○ Risk Profile: Moderate.
2. Schroders Capital European Real Estate Fund
○ Aim: To achieve capital growth and enhanced income through asset repositioning and redevelopment across Europe.
○ Strategy: Invests across office, retail, industrial, and residential sectors, upgrading or redeveloping assets to add value.
○ Risk Profile: Moderate to High.
Opportunistic Funds
Focus: High-risk, high-return strategies through significant redevelopment, repurposing, or market timing.
1. Schroders Capital Pan-European Logistics Fund
○ Aim: To capitalize on the growth of e-commerce and supply chain transformation by investing in logistics and distribution centers.
○ Strategy: Targets underserved markets and redevelops properties to take advantage of logistics demand growth.
○ Risk Profile: High.
2. Schroders Capital Real Estate Debt Fund
○ Aim: To provide attractive risk-adjusted returns through real estate lending.
○ Strategy: Offers secured lending opportunities across a range of property sectors, capturing value from borrowers seeking flexible financing.
○ Risk Profile: High.
Summary
* Core: Focus on low-risk income stability (e.g., SCREF, Global Cities Fund).
* Core+: Stable income with moderate growth (e.g., SREIT).
Value-Add: Enhance underperforming assets for growth and income (e.g., SCREIF).
Different teams at Schroders
What Questions do you have
What role does sustainability have on a day to day for you?
What is your thoughts on data centres, from talking to interns, I see most of your workflow has been on logistics?
What type of logistics and companies would be most interesting?
Thoughts on office?
How localised or asset specialised do you become?
I was wondering how important logistics are to your investments?
From speaking to other RE investors I’ve seen how data centre investments can be difficult just as a single asset investment
My end goal is really to be an analyst at Schroders, what skills do you see from those who are successful in reaching that goal?
How best would you advise me to prepare for the internship? I’ve heard from others that Barings often demands a high skill threshold.
One of the things I really like about Barings is the more flat and entrepreneurial culture, I’ve heard from past interns that the CEO even talks to the interns and does a quick Q&A. Is this something that is emphasised a lot? What would you say are the most unique parts of Barings culture from your interactions with them?
What is the rest of the process like?
Is there anything in my skills or experience where you’d like more clarification
My aim is to be a full-time analyst at the firm, what can I do to make myself ready for the internship?
What has set apart previous interns in the past?
What roles do interns at Barings often take up?
Do class specific questions
You identified Aging Population & demographic shifts, does this mean elderly living is an increasing part of your portfolios?
What questions do you have - sustainability
- How does Schroders integrate sustainability principles into its day-to-day decision-making processes for real estate investments? Are there specific metrics or KPIs you focus on beyond standard ESG measures?
The SCREIF fund was recently awarded the FCA’s ‘Sustainability Impact’ label. How has this recognition shaped investor interest, and do you foresee expanding similar initiatives globally?
What questions do you have PBII
- PBII is a critical strategy for Schroders to address geographical inequalities in the UK. Could you elaborate on how Schroders balances financial returns with the long gestation periods often associated with these investments?
The proprietary “impact scorecard” used to evaluate PBII projects sounds innovative. Could you share how this tool has influenced your investment decisions and the measurable impacts it has delivered so far?
What questions do you have for sector specific trends
- With data centers becoming core infrastructure, how does Schroders approach the high capital intensity and operational challenges of managing these assets compared to other real estate sectors?
In the logistics sector, what types of tenants or assets are driving long-term demand, and how do you mitigate risks associated with rapid technological changes in this field?
What questions do you have concerning regional strategies
- Schroders has invested significantly in regenerating urban areas such as Croydon and Amsterdam. What lessons have you learned from these large-scale redevelopment projects, and how do they inform strategies for tackling regional disparities in the UK?
Given the broad geographical spread of deprivation in the UK, how does Schroders identify and prioritize areas for real estate impact investments?
What questions do you have - hospitality and mixed use
- In the transformation of the beachfront hotel in Nice, operational and strategic improvements increased valuation significantly. How do you balance operational expertise with physical refurbishment in hospitality investments?
With the growing popularity of mixed-use developments like Bajeskwartier, how does Schroders address the potential trade-offs between commercial viability and community-focused amenities?
Difference between project and investor cash flows
Why RE?
RE investing is about having the biggest impact through investing and improving assets to be the best possible —> Kibaha —> hospitals curing thousands, markets making communities thrive —> made me interested in the scale of capital –> the scale of firms like barings is exactly where I want to be, but at the same time employing similar expertise to find value in their skillsets e.g. Barings Build to Core Strategy (capitalising on the ESG Trends in the PWC Emerging Trends in RE) and partnership with locals in EM (capitalising on Experiential RE)—> same I experienced at Avington, family office investment became 7th in the world.
Why Buyside?
Always had a native interest and passion for investing. (Simpsons) —> managed a small portfolio through YouTube, books and learning from huge value investors —> took that into lse, second stock pitch in lse investment competition, one of only 4 investors to be chosen from the first year —> thought investment banking might be for me but most interesting part was evaluating family office investments and optimising current e.g optimising every small detail from procurement to the material on roofs, everything made a big impact.
What are some trends you have been following in the RE sector?
Internship at Avington monitored Blackstone expansion into the UK domestic staycation market from Bourne Leisure acquisition in 2021 for $3 billion –> following bolt on acquisitions such as of Village Hotels or smaller country assets such as Ardent Hotel show long-term confidence –> seems a bit confusing w macro picture –> wage stagnating? Why holiday –> acc perfect opportunity for negative income elastaticity, people focus on domesitc tourism as intl become less appealing –> BX long term strat of repositioning these assets to be more appealing long-term e.g. Wetherspoons partnership into Haven Parks and £170 million refurbishments
Why Investment Management Rather than IB
Always had a native interest and passion for investing. (Simpsons) —> managed a small portfolio through YouTube, books and learning from huge value investors —> took that into lse, second stock pitch in lse investment competition, one of only 4 investors to be chosen from the first year —> thought investment banking might be for me but most interesting part was evaluating family office investments and optimising current e.g optimising every small detail from procurement to the material on roofs, everything made a big impact.
Why RE Equity?
Real Estate Equity –> links to Kibaha but about having the power to make an impact through change on a tangible basis –> Seen it at Avingstone —> M’As D’en Bruno in Barcelona, capitalising on knowledge of winery resorts –> break into the top 100 list of hotels, getting 6th best hotel in the world –> Same with barings take advntahe of strong trends
