• The trust aims to deliver an attractive level of income together with the potential for income and capital growth from investment in a diversified UK commercial property portfolio. It offers investors prime exposure to commercial property assets.

  • How to Invest

    Open an F&C Savings Plan:

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Key facts

  • Key points

    This trust offers exposure to a diverse portfolio of UK commercial property and a high level of income is paid quarterly. Investors can gain exposure to an asset class that is usually not accessible, via a readily realisable vehicle.

    Fund facts
    Investment manager F&C Investment Business Limited
    Launch date 1 June 2004
    Total assets £328.90 million (as at 31.03.15)
    Currency Sterling
    ISIN GB00B012T521
    SEDOL B012T52
    Key dates
    Annual general meeting  
    Year end 30 June
    Dividend payment date(s) March, June, September and December
  • Fund manager commentary

    Total returns for UK commercial property continue to be supported by a growing economy, low interest rates and some improvement in the occupational market, with performance buoyed by high levels of investment into the asset class.

    The quarter to 31 March 2015 recorded further capital growth in the Company’s portfolio, with like for like capital values increasing by 1.7%. With the benefit of an income return of 1.4% over the period, the portfolio produced an ungeared total return of 3.1%.

    South-east industrials, which account for 25% of the portfolio by value, were the major contributors to performance delivering 4.4% over the quarter. Lakeside Road, Colnbrook; Echo Park, Banbury and Chippenham Drive, Milton Keynes were the three properties producing the greatest weighted contribution to relative returns, and their performance reflected improvements in the occupational market and increasing interest from investors.

    The Company continues to seek new investments, which reflect good value in a market which has become very competitive with the weight of money coming into the sector. During the quarter, the Company purchased 58 The Ropewalk (Park View House), Nottingham for £3.25 million reflecting a net initial yield of 7.1%. The property comprises a well located city centre office building of approximately 16,000 square foot over three floors with excellent car parking. The building had recently been refurbished to a high standard by the vendor, and is let to three tenants on leases expiring in 2024.

    The Company is continuing in its strategy of selling smaller underperforming investments and took advantage of the strong private investor market to sell 40 Yorkshire Street, Rochdale, let to Coral at a rent of £32,500 per annum on a ten year lease with a break at sixth year, at auction for £350,000.

    Following the revaluation of the portfolio the capital value increased to £329.3 million. The portfolio continues to be well and securely let with all of the ten largest tenants by rent paid, either being classified as Negligible or Low risk, according to IPD. The average unexpired weighted lease term now stands at 7.8 years. The vacancy rate stood at 4.4% by estimated rental value as at 31 March 2015.

    As at 31 March 2015

  • The value of shares and the income from them is not guaranteed and can fall as well as rise due to stock market movements. Past performance is not a guide to future performance. When you sell your shares, you might get back less than you originally invested. If markets fall, gearing can magnify the negative impact on performance. A fund investing in a specific country carries a greater risk than a fund diversified across a range of countries. The value of property related securities are likely to reflect valuations determined by professional valuers. Such valuations are the opinion of valuers at a particular point in time and are likely to be revised. Property and property related assets can sometimes be illiquid.
  •  

  • Ian McBryde

    Ian McBryde

    Fund Manager

Past performance is not a guide to future results. The value of investments can go down as well as up.

Information in this section of the Website is directed solely at persons who are located in the UK and can be categorised as retail clients. Nothing on this website is, or is intended to be, an offer, advice, or an invitation, to buy or sell any investments. Please read our full terms and conditions before proceeding further with any investment product referred to on this website. This website is not suitable for everyone, and if you are at all unsure whether an investment product referenced on this website will meet your individual needs, please seek advice before proceeding further with such product.

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