19th Nov 2013 16:28
LONDON (Alliance News) - F&C UK Real Estate Investments Limited Tuesday said its portfolio increased in value in the three months to September 30, benefiting from sharp turnaround in the UK property market over 2013.
The property portfolio was valued at GBP278.9 million on September 30, an uplift of GBP2.3 million since June 30. The portfolio produced a return of 2.6% over the quarter, with capital growth accounting for 0.8% of the return and income being 1.8%.
"Central London offices and the retail sector outperformed, with major contributors to performance being 14 Berkeley Street, London W1, a West End office building with a Land Rover showroom on the ground floor, which increased in value by GBP900,000 or 4.8%," the company said in a statement.
The company's investment manager is continuing with a strategy of selling smaller assets, with two assets sold in the previous quarter. Although no sales were completed in the quarter ending September 30, there are four properties which are under offer for sale.
"The vacancy rate of the portfolio remains low with a void rate of 3.1% and an average weighted unexpired lease term of 7.7 years," the company added.
In a separate statement, F&C UK Real Estate Investments also commented on proposed changes to the UK regulator's rules regarding restrictions on the retail distribution of unregulated collective investment schemes and close substitutes which will come into effect on January 1, 2014.
"Following the receipt of legal advice, the board confirms that it conducts its affairs, and intends to continue to conduct its affairs, so that the company's shares will be excluded securities under these new rules and will therefore be excluded from the Financial Conduct Authority's restrictions which apply to non-mainstream investment products," it said. "The company's shares are excluded securities because the company would qualify for approval as an investment trust if it was resident in the UK."
F&C UK Real Estate Investments shares were Tuesday quoted at 81.67 pence, up 0.5%.
By Samuel Agini; [email protected]; @samuelagini
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