The Charities Property Fund invested over £100 million in 15 new properties during 2004, with the majority purchased off market.
Over the last year the fund acquired 7 industrial properties, 6 offices, 1 retail warehouse and a shopping centre.
In December the Fund purchased the ATIS Weatherall's offices on Chancery Lane in central London, industrial units let to John Menzies in Newcastle-under-Lyme and to Tetley in Newton Aycliffe, and offices on the Birmingham Business Park let to Spring Technology and Harpur Group. The Fund has made only one sale this year, a high street shop in Winchester let to Clarks.
The Fund continued to deliver a net income of at least 6% to its charity investors. This is significantly above most balanced property funds which yield on average 4% to 5%. Alison Puhar of Cordea Savills, the property manager, said "Our focus is on quality properties with attractive yields and growth prospects. In this market we have been looking for properties with active management potential where we can add value. We had to work hard to spend the money with over two thirds of the purchases bought off-market."
Charles Mesquita of Carr Sheppards Crosthwaite added "When we ask charities what is important to them, it is clear that they want to maximise their income while protecting their underlying capital against erosion by inflation. Our aim is to deliver consistent returns without the potential risks inherent in gearing the portfolio which should mean our performance is not as volatile as some other funds." Charles went on to comment "we are continuing to see charities investing in property and over the last year new subscriptions have averaged £24 million per quarter".