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UK unlisted pooled property funds NAV reaches GBP30.5bn

The Association of Real Estate Funds’ Investment Quarterly for quarter two 2010 reveals a net asset value of GBP30.5bn for UK unlisted pooled property funds, up GBP9.5bn on this time last year. 

Excellent performance and significant net inflows account for this increased net asset value.

The Investment Quarterly examines trends in the UK unlisted pooled property funds industry through data provided by 66 member funds.

In Q2 2010, pooled property funds raised GBP1.4bn of new money, continuing the positive flows of the previous two quarters. Money raised from new investors was broadly in line with that raised from existing investors in quarter two 2010.

Net flows were GBP0.9bn this quarter, bringing the total for the last 12 months to GBP5.8bn, the highest 12 month figure on record.

The all-pooled property fund index saw a positive total return of 3.4 per cent in Q2 2010, down from 5.9 per cent in the previous quarter. During the 12 months to June 2010, pooled property funds delivered a positive return of 22.9 per cent and over ten years an annualised return of 5.0 per cent.

The weighted average pooled property fund yield was 4.32 per cent in Q2 2010, down slightly from 4.6 per cent in the previous quarter.

Looking at retail investment in pooled property funds, the net asset value of authorised property unit trusts reached GBP7.8bn in Q2 2010, back to the levels last seen in 2007.  The pace of new capital raised by retail investors decelerated by 36 per cent on the previous quarter, to GBP734m in Q2 2010.

John Cartwright, Aref chief executive, says: “Quarter two’s figures show a continuation of the positive flows seen in the previous two quarters, with net asset value up GBP9.5bn on this time last year. The highest inflows on record for the past year reveal a picture of excellent annual performance and ongoing investor confidence in pooled funds as an effective way of accessing property returns.”

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