REAL ESTATE - Noble Property Trust 鈥� the fund set up last year with an initial 拢20m (鈧�29m) investment from Nottinghamshire County Council Pension Fund 鈥� has reported what it describes as 鈥渋mpressive early gains鈥� in its first six months.
The fund attributed a 14p increase in its unit offer price to nimbleness in responding to market conditions. Deals during the first half of the year included the quick sale of a Surrey office block for 拢5.75m and reinvestment of the 拢5.4m proceeds in a warehouse in Portsmouth.
Further acquisitions are expected in the near future. The fund seeking 拢20m of equity from pension funds towards an expected fund size of 拢120鈥�150m, including debt. Annual returns are forecast at above 10%.
The fund, which acquires 鈥楥inderella鈥� properties it can add value to, was set up when Nottinghamshire County Council provided 拢20m for acquisition at the end of 2005 of the 拢56.2m Macallan portfolio, comprising 20 offices throughout the UK.
Real estate accounts for 15% of the Nottinghamshire portfolio. Most of the allocation is invested in UK property, with a small part invested overseas.
鈥淲e recognise that among local authority pension funds, our real estate allocation is among the highest,鈥� said an investment specialist on the fund. 鈥淲e need to be conscious of that, but the investment committee is keen on real estate.鈥�
