The introduction of the euro has generated 'significantly greater' cross-border interest in European property markets, Schroder European Property Fund chairman Jeremy Lewis said this week.

Announcing a 28% increase in the fund's net income to NLG 23.7m (£7.4m) in the six months to 31 December, Lewis said US investors had joined European ones in the search for shopping centres and office buildings in France, Italy and the Netherlands, in particular. 'Prices have risen accordingly, a trend that is expected to continue for the next year, notwithstanding subdued economic growth across the European Union,' he added.

Schroder's NAV at the end of 1998 was NLG 36.1 a share, compared to NLG 32.4 in 1997, but a revaluation of the portfolio will not be carried out until July.

Property assets now exceed NLG 1bn, following the October purchase of the Tax Office building in Slotedijk, Amsterdam, for NLG 185m.