Press Releases

The Fund returned 1.7% in Quarter 4 and 6.0% during 2011.  Distributions amounted to 5.67 pence per unit during the year representing a 7.7% yield to investors based on the December 2011 NAV. 

The Q4 distribution (payment will await completion of the audit of the year end accounts) will be 1.33 p.p.u (gross).  This represents a slight increase on the Q3 payment of 1.29 p.p.u. Distributions in H2 of this year were lower than H1 owing to new subscriptions entering the Fund and the time it took to conclude on new acquisitions.

In addition to the forward commitment relating to the Travelodge in Teddington, we contracted on three transactions in December.  These total some of £28.5 million and generate an overall yield to the Fund of 6.7%.

The transactions include a wholesale cash & carry warehouse in Rochester, let to Booker, with a lease having 15 plus years unexpired and providing for annual rental increases of 3% per annum.  A retail warehouse in Redditch let to Matalan with over 15 years unexpired has also been acquired whilst the Fund completed on a new multi-let office investment in Guildford on 10th January 2012.

With Guildford and the forward commitment in Teddington, (to be completed in April/May 2012), the weighted unexpired lease length will increase to 10.3 years whilst 40.5% of portfolio income will be subject to minimum or inflation linked reviews. Gross assets will stand at c. £147m once this asset is acquired.
Borrowings on the Fund post the new acquisition activity will represent a loan to value of 25%.
The Fund enters 2012 in a position where it is fully invested, therefore reducing the potential for ‘cash drag’ in early 2012 on the distributions to investors.

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