During September the New Star UK Property Unit Trust agreed a rent review at a retail property in central Birmingham. The annual uplift in rent represents an increase of more than 10% on the rent previously paid by the FTSE 100 tenant at this property.In Gloucester, where the fund is appealing against the refusal of a planning application to redevelop its former B&Q retail warehouse, the proposed retail scheme has won support from the local chamber of commerce and a number of local councillors. A decision from the council planning committee is anticipated in the first quarter of 2009.Despite further deterioration in the global credit markets and emerging signs that the effects of the credit crunch are spilling over into the wider economy, it is pleasing to report that more than 99.5% of this quarter's rent was received from the fund's 127 tenants within one week of the due date. This again demonstrates the underlying strength and surety of the fund's rental income.At the end of September, the fund was 85% invested in bricks and mortar, 9% in equities and 6% in cash.Global equity markets declined substantially in September. The FTSE real estate sector lost less than the broader UK equity indices and a number of the fund's holdings were even more resilient, outperforming the real estate sector. The best performing stock in the portfolio was Hammerson, which ended up on the month after the $108.5 billion Ontario Teachers Pension Plan took a 10.1% stake in the company "for investment purposes".
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