View more on these topics

New Star pumps cash into property shares

New Star is to make a multi-million pound investment in property shares after selling at a loss its biggest holding in its £1.5bn UK property fund, the London headquarters of Commerzbank.

Chief executive of prop-erty fund management Roger Dossett believes real estate shares are flattening out after an over-correction in the market at the end of 2007.

New Star sold the prop-erty at 60 Gracechurch Street for £127.5m, with half the proceeds expected to go into real estate equities.

Dossett says he felt that the property, which New Star bought 14 months ago for £146m, represented a disproportionately big holding. The second-biggest asset is a City office valued at £100m.

The move means that the liquidity level on the UK property vehicle rises from 18 to 25 per cent.

Dossett says: “This gives us extra liquidity to look into both real estate shares and direct commercial property, particularly as the former’s values are operating 25 per cent beneath underlying asset values.” He says thathe will look to have half of the 25 per cent liquidity in property shares, with investment in direct UK commercial property likely to come later this year.

Dossett says: “We will invest gradually both in real estate equities and direct UK commercial property if the opportunity arises.

“There was a very big movement in the value of properties at the end of last year but property is now yielding slightly better while the income stream is strong. You are also seeing a number of buyers in the market from Germany, Ireland and the Middle East.

“Property is still a strong long-term investment that will offer a steady, sound return based on income.”

Recommended

Thinc Group acquires Watterson Wealth Management

Thinc Group is expanding its wealth management offering with the acquisition of Watterson Wealth Management. The Knutsford-based firm, servicing the high net worth end of the market, brings 18 staff including three advisers into Thinc. It looks after over 250 clients and has £152m funds under management. The deal was completed for an undisclosed sum.Thinc […]

T Bailey sees bigger Fof role for structured plans

T. Bailey fund manager Jason Britton believes that struct-ured products will play a bigger role in fund of funds offerings as managers look to add value at different stages in the market.The firm is one of several fund of fund managers which incorporate structured products in a bid to garner stronger returns.Britton says: “What they […]

Ifs ProShare to host CGT workshop

Ifs ProShare is holding a capital gains tax workshop on Monday March 17. Facilitated by Grant Thornton, the workshop will explain the tax changes introduced by Alistair Darling and the impact those changes will have on employees participating in employee share plans.Ifs ProShare head of employee share ownership Fiona Downes says: “The imminent changes to […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm

    Email: customerservices@moneymarketing.com