Property with strong potential for
appreciation for investors prepared to take risks.
The BalancedPortfolio UK property fund-of-funds was closed in June 2007 with equity capital of GBP 117.06 million. The fund-of-funds invested GBP 104.3 million in three institutional property target funds. The investment objects of the target fund are properties in Great Britain, especially in and around London. Investments in the selected target funds are distributed over the chosen target funds as follows: UBS South East Recovery Fund (GBP 31.3 million), IVG/AXA Greater London Fund (GBP 27.0 million), and ING Lionbrook Property Fund (GBP 46.0 million).
The investment strategies of the target funds are classified as geared to opportunities with a corresponding risk profile. The goal is to improve properties or project developments acquired at low prices within short holding periods through selected initiatives and to sell them at a profit. As a result of the international financial market crisis, sales were non-existent or low. For the time being, the target fund managers use these sales proceeds to repay loans and to service returns of share certificates. In their investment strategies, the target funds continue to concentrate on stabilizing the respective real estate portfolios. Since the second half of 2009, the target funds have again been performing well but it will take some time to recoup past book losses and reach the same level as before the financial and economic crisis.
At present, no significant return flows to the fund company are expected. The projected return is no longer realistic from today’s standpoint.
Halbjahresbericht Balanced Portfolio UK per 31.12.2009
(only available in German)
