Fund Objective

The fund aims to obtain a total return based on income and capital appreciation.

View on Past Performance

Well-let, well-located industrial property witnessed a period at the start of the year where investment yields continued to strengthen with particular focus on the southeast. An investment yield differential between top quality and secondary industrial stock has now been seen to emerge.During the second quarter, we purchased a car showroom in Weston-Super-Mare. The property is let to Cruickshank Motors Ltd and guaranteed by Sytner Group Limited (D&B 5A2), for a term of ten years, with rent reviews geared to RPI, subject to a cap based on 2.5% pa compound. The showroom currently trades as Mercedes-Benz Weston-Super-Mare. It was purchased for £2.6m reflecting a Net Initial Yield of 5.8% which represents good value in the current market.The purchase further diversifies the portfolios sector exposure.The directly held property portfolio consists of 8 properties in total, made up of four high street retail, three industrial properties and now a car showroom spread geographically across the UK. The properties are let to a total of 12 separate companies with a rent weighted average unexpired lease term of 6.3 years.

Future Expectations

The UK Property Trust has a number of further deals in solicitor's hands that have been identified as offering good value in the current market and continues to seek direct investments across all sectors where value can be added. The strategy is to compile a diversified portfolio offering significant income advantage to the market as a whole.

Fund Details