Charities investing in the first property common investment fund, The Charities Property Fund, have seen it outperform other pooled property funds by nearly five per cent since launch.
Charities investing in the first property common investment fund, The Charities Property Fund, have seen it outperform other pooled property funds by nearly five per cent since launch. That gives a 17 per cent total return to investors compared to the peer group average of 13.2 per cent (published by The association of Property Unit Trusts [APUT]).
Charles Mesquita, charities specialist at Carr Sheppards Crosthwaite, joint managers of The Charities Property Fund said: "The Charities Property Fund continues to go from strength to strength and the performance it has achieved is testament to the quality of the properties within the portfolio. It currently stands at over £70 million and we have already received commitments for further significant funds for this quarter (30 September)."
Alison Puhar, director at Savills Fund Management, pointed out property is currently an exciting investment prospect for charities. "Property has been the best performing asset class over the last five years and we predict that property will continue to deliver a total return (income and capital) of 9% per annum over the next five years.".
Ms Puhar emphasised that good management of property investments is crucial. "By investing in properties with sound tenants and long leases (up to 25 years), alongside upward only rent reviews property can offer charities reasonably predictable returns with 70% to 80% coming from rental income."