The largest trust of its kind in the UK, UK Commercial Property Trust (UKCPT), revealed earlier this week (August 21st) that its net asset value (NAV) per share has fallen by 1.2 per cent to 68.9 pence over the six months leading to June 30th (2013).
The trust, which is based in Guernsey, has seen the value of its property portfolio fall, while it actually announced a net profit of £18 million across the UK, compared to the loss of £4.42 million it had made in the first half of 2012.
UKCPT chairman Chris Hill said: “The strong results... reflect not only the high quality nature of our portfolio and the active asset management undertaken by our team of experienced managers, but also a broader improvement in sentiment across the UK economy."
The report highlights that rents continue to grow in central London in both the commercial and retail sub-sectors. This is in contrast to the weaker performances that were recorded across the rest of the UK, especially with retail markets outside of the south-east of England.
In the first six months of 2013, UKCPT paid £18 million to acquire an industrial park in Dartford, while it also offloaded various properties in Raynes Park and Glasgow for £7.25 million and £10.45 million respectively. The Trust also green-lit new lettings to PaddyPower and Costa Coffee, meaning that an extra £142,000 will be brought in revenue each year.
These figures come after a recent report by Cushman & Wakefield revealed that investment volumes in the first half of the year have been performing extremely well, especially with a strong demand for prime assets in central London.C&W's head of UK capital markets David Erwin said: "There is absolutely no doubt that there is optimism around the market which we haven't seen for a number of years."