LONDON (ShareCast) - (ShareCast News) - Real estate investment group Alpha Real Trust saw its net asset value (NAV) rise in its first half of trading as it moved to make further investments in build-to-rent projects.
Alpha's NAV grew 10% in the six months leading to 30 September, coming in at 167.3p, leading the firm to announce a quarterly dividend of 0.6p per share or 1.2p for the half.

Alpha's chairman, David Jeffreys, said the company "actively manages its investment portfolio which continues to be replenished via capital recycling from the sale of non-core assets, loan repayments or strategic full or partial disinvestment from assets that allow for profit-taking and portfolio optimisation. This creates the opportunity for capital allocation to new investments."

Jeffreys noted that gains made from recent disposals would be used to "further invest in its Private Rented Sector and data centre build-to-rent investments, with the potential for capital investment in excess of £48m. In addition, we expect to make significant additional mezzanine loan investments."

Earlier in the year, Alpha sold 70% of its interest in the H20 shopping centre in Madrid and its entire stake in Industrial Multi Property Trust for 330p per share to London-based investment firm Hansteen Holdings.

"New investment opportunities that are capable of delivering strong risk-adjusted cash flows are being actively pursued", Jeffreys said.

Jeffreys said he felt the firm had "achieved the significant milestone of securing planning consent for each of its build-to-rent investments."

"These investments offer the opportunity to create a higher yield on cost than is available from purchasing existing built investments of the same quality," he said.

Also in the period, Alpha gained planning permission for a 40,000 square metre data centre in the German city of Frankfurt, locking them into a €28m investment in the region.

"The company remains well positioned to continue to deliver attractive returns through investing, realising and re-investing its capital in asset-backed investment opportunities," Jeffreys concluded.

As of 1115 GMT, shares had retreated 1.03% to 121.24p.

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