UK - Commercial property will continue to offer pension schemes attractive returns and a stable capital base over the short to medium-term, Standard Life Investments predicts.
The fund manager says institutional investor interest in its commercial property-based property income trust underlines its forecasts.
The Standard Life Investments Property Income Trust – which has just completed the £6.5m acquisition of 2-4 Bucknall Street in London – has closed to new investors with a total investment of £186m. SLI says this figure is significantly higher than its original estimation.
Investment director Andrew Jackson said: “We are positive on the outlook for commercial property in the UK and believe it will continue to provide investors with a stable capital base and an attractive level of income for the next few years.”
The freehold building comprises a 16,800 sq ft former Victorian Warehouse which has been fully refurbished to provide contemporary style offices. The property is let to advertising agency, Mustoes, for a term of 15 years from June 6, 2003.
The £93.5m portfolio that backed the fund at launch consists of UK commercial properties, diversified across sectors as well as geographically with 48% in the office sector, 42% in retail and 10% in industrials.The fund is targeting an annual gross dividend yield of 6.5% on issue price.
The Brunel Pension Partnership has become the fourth local authority pool to receive the green light from the regulator.
Defined benefit (DB) schemes are to be offered a new consolidator as the former chief of the Pension Protection Fund (PPF) launches 'The Pension SuperFund'.
Martin Freeman has been hired as head of technology product and development at Smart Pension, to support the 'growing' technology product side of the business.
Tim Sharp says the government has missed some big opportunities to help workers in the DB white paper.