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The
Fund currently comprises 12 well-let investments and 3 developments,
with further schemes under consideration.
On
completion and letting of current developments, the property
portfolio is anticipated to have a value of £430 million
(investment properties £343 million as at 31/12/07).
The portfolio is outlined as follows:
| Existing
total floor area |
3,601,100
ft2 |
| Current
income |
£21,550,000
pa |
| Income
yield on current investments |
6.49% |
| Average
unit size |
Approximately
290,000 ft2 |
| Average
income weighted lease length |
14.6
years |
| %
of assets in the South |
74%
(by Capital Value) |
Development
in the UK Logistics Fund
| Development
sites owned |
G
Park, Sheffield, G Park, Bristol and CrackerJack, Corby |
| Floor
area with planning consent |
1,264,072
ft2 |
| Rental
value |
£6,121,702 |
| • |
Gazeley
will offer the Fund a pipeline of new development opportunities
under their consideration, although the Fund is able
to explore wider opportunities. |
| • |
Research
driven strategy identifies future sites to be selected
by the Fund to provide the best opportunities for capital
and rental growth. |
| • |
All
profits and loses are shared on a 50:50 basis with Gazeley
on speculative developments and on a 25:75 (Fund:Gazeley)
basis on pre-lets. |
| • |
Maximum
exposure to speculative development at 35% of gross
asset value. |
| • |
Fund
able to work with other developers. |
Fund Management
The Fund benefits from the expertise of Hermes Real Estate
and Legal & General Property and is managed by a joint
management company and with an experienced logistics fund
manager, Jonathan Holland.
Forecast
Returns
The portfolio is forecast to deliver a geared IRR in excess
of 8% before potential performance fees.
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