Schroder Real Estate Investment Management has taken over as the fund manager of the Ground Rents Income Fund, owner of Beetham Tower in Manchester, replacing Brooks Macdonald.
The appointment will see James Agar, Brooks Macdonald’s Manchester-based head of specialist funds, join Schroders, alongside members of the wider ground rents team.
According to a statement to the stock market, Brooks Macdonald is stepping back from ground rents to focus on its core offerings.
Schroders has been specifically appointed by the Ground Rents Income Fund to deliver active asset management, as well as deal with “complex situations” such as the impact of Carillion’s liquidation and litigation currently ongoing over £4m of cladding work needed at Beetham Tower.
Agar will remain based in Manchester, delivering alternative investment services for Schroders, representing an increased focus on the city by Schroders, which has already acquired key assets such as City Tower and No1 Spinningfields.
Nick Montgomery, of Schroder Real Estate Investment Management, said: “Ground Rents Income Fund plc’s diversified portfolio of ground rents provides long-term, stable income with high inflation-linkage which is differentiated from other Schroders’ real estate products.
“We recognise the regulatory challenges that face the industry, but believe that we have the platform to support the existing team to continue to be a best-in-class operator in the leasehold sector as evidenced by their commitment to the Public Pledge for Leaseholders.
Furthermore, the residential sector is a growing part of the institutional real estate market and the appointment fits well with Schroders’ broader Real Estate strategy to be closer to our assets.”