8589943210
Objective
The Company's investment objective is to provide ordinary
shareholders with an attractive level of income together with the
potential for capital and income growth from investing in a diversified
UK commercial property portfolio.
Investment Policy
The Company's policy is to hold a diversified portfolio of
freehold and predominantly long leasehold (over 60 years remaining at
the time of acquisition) UK commercial properties. It invests
principally in three commercial property sectors: office, retail and
industrial.
The Company invests in properties which the Board, on the
advice of the managers, believes will generate a combination of
long-term growth in capital and income for shareholders. Investment
decisions are based on an analysis of, amongst other things, prospects
for future capital and income growth, sector and geographic prospects,
tenant covenant strength, lease length, and initial and equivalent
yields.
Investment risks are spread by investing accross different
geographical areas and sectors and by letting properties to low risk
tenants. The Company has not set any maximum geographic exposures, but
the maximum weightings in the principal property sectors at any time
(stated as a percentage of total assets) are: office: 50 per cent;
retail: 65 per cent; and industrial: 40 per cent.
No single property may exceed 15 per cent of total assets and
the five largest properties (excluding indirect property funds) may not
exceed 40 per cent of total assets, (in each case at the time of
acquisition). Short leasehold properties (with less than 60 years
remaining) may not exceed 10 per cent of total assets at the time of
acquisition.
The Company is permitted to invest up to 15 per cent, at time
of acquisition, of its total assets in indirect property funds,
(including other listed property companies) which invest principally in
UK property, but these investments may not exceed 20 per cent of total
assets at any subsequent date. The Company is permitted to invest cash,
held by it for working capital purposes and awaiting investment, in cash
deposits, gilts and money market funds.
The Company uses gearing to enhance returns over the long
term. Gearing, represented by borrowings as a percentage of total
assets, may not exceed 50 per cent. However, the Board's present
intention is that borrowings of the group will be limited to a maximum
of 35 per cent of total assets at the time of borrowing.