Threadneedle Property Unit Trust Annual Report & Financial ...

THREADNEEDLEPROPERTY UNIT TRUST

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ANNUAL REPORT AND FINANCIAL STATEMENTS THREADNEEDLE PROPERTY UNIT TRUST FOR THE YEAR ENDED 31 MARCH 2017

Threadneedle Property Unit TrustManaged by Threadneedle Investments

(Channel Islands) Limited

Threadneedle Investments (Channel Islands) LimitedLiberté House

19-23 La Motte StreetSt Helier JerseyJE2 4SY

Telephone: Company Secretary on 01534 709109Dealing on 01534 709140

Threadneedle Property Unit Trust

Fund Report

Notice of Meeting 1

Statement of the Chairman of the Boardof the Manager 2

Investment Advisor’s Report 3

Transactions and Key Events 8

Property Portfolio

Offices 11

Retail 18

Industrial 27

Retail Warehouses 34

Car Showrooms 37

Leisure 37

Bristol Portfolio 38

Financial Statements

Statement of the Manager’s Responsibilities 41

Statement of the Trustees’ Responsibilities 41

Report of the Trustees 41

Manager’s Report 42

Independent Auditors’ Report 43

Statement of Comprehensive Income 44

Statement of Change in Net Assets Attributableto Unitholders 44

Balance Sheet 45

Statement of Cash Flows 46

Notes to the Financial Statements 47

Additional Information

Additional Information (unaudited) 56

About the Trust (unaudited) 60

Management and Administration 64

Important Information 65

Contents

Notice is hereby given that the Fiftieth Annual General Meeting

of Unitholders of Threadneedle Property Unit Trust will be held

at BNP Paribas Securities Services S.C.A., Jersey Branch,

Liberté House, 19-23 La Motte Street, St Helier, Jersey JE2 4SY at

12.00pm on 27 July 2017 for the following purposes:

n To receive the Report of the Manager and the Auditors and the

Financial Statements for the year ended 31 March 2017;

n To reappoint PricewaterhouseCoopers CI LLP as Auditors; and

n To authorise the Manager to fix the remuneration of the

Auditors.

By order of the Manager:

BNP Paribas Securities Services S.C.A., Jersey Branch

Company Secretary

14 June 2017

A Unitholder entitled to attend and vote at the meeting may

appoint a Proxy to attend and vote in his place and a Unitholder

being a corporation may authorise any person to be its

representative at the meeting. A form of Proxy is enclosed.

To be effective, the form must be deposited at the offices of

Threadneedle Investments (Channel Islands) Limited, Liberté

House, 19-23 La Motte Street, St Helier, Jersey JE2 4SY, marked

for the attention of the Company Secretary, not later than

48 hours before the time appointed for holding the meeting.

1


Notice of Meeting

Looking at 2016 from a domestic perspective, I believe the result

of the UK’s referendum on EU membership was, without doubt,

the dominant story and potential force for change during the

year. The UK’s decision to leave the EU was contrary to the

expectations of polls, politicians and commentators alike and

now represents a major unknown and source of uncertainty for

the UK economy generally. The full ramifications of this decision

and the resultant landscape for international trade will take a

considerable period to become clear.

As described in detail in the Investment Advisor’s report that

follows, the UK commercial property market was briefly the

focus of the greatest concern immediately post referendum as

daily dealing, retail property funds were subjected to

unprecedented redemptions. It is important to stress, particularly

in the context of this report, that the more numerous institutional

funds, of which TPUT is of course one, were unaffected,

benefitting from the protection of lengthy periods for the pricing

and payment of redemptions as standard protocol.

The above Brexit impact together with a rather more predictable

cyclical cooling, combined to generate relatively modest

commercial property market total returns in 2016 of 3.8% (MSCI

UK Monthly Index). However, it is encouraging to observe that

2017 has, thus far, been characterised by healthy dynamics in

occupational markets and ongoing investor enthusiasm for

commercial property.The very pessimistic predictions emanating

from many market commentators for the immediate aftermath of

a ‘leave’ scenario have proven incorrect. The very fact of Brexit

has not destabilised the UK commercial property market

although its eventual realities remain unclear.

For you as investors in Threadneedle Property Unit Trust, I am

pleased to report an element of outperformance by the Trust over

its benchmark during both calendar year 2016 and the

twelve months to end March 2017. The Trust’s superior

distribution yield together with some beneficial strategic

portfolio positions, most notably in the industrial sector, have

both contributed to this outperformance. A strong asset

management contribution and some opportunistic sales have

also delivered significant performance enhancement.

In an investment landscape starved of income and with equity

markets hitting new highs over recent months the UK

commercial property market offers strong ongoing appeal to

investors. The commercial property outlook for the coming year,

being more income dominated than over the past six years, does

I believe, play to the strength of the Trusts approach, founded

upon high income generation and active asset management.

Prudent cash management and pronounced portfolio

diversification represent further important controls and

disciplines in terms of ongoing risk mitigation.

Key Performance IndicatorsThe Manager considers the following to be the Trust’s Financial

Key Performance Indicators:

n The growth of the Trust’s NAV price; and

n Investment income.

The Manager believes that no Non-Financial Key Performance

Indicators are applicable to the Trust’s activities.

Material Changes DisclosureThe Manager confirms that there have been no material changes

to the Trust’s Prospectus, including the following terms:

n Liquidity of underlying assets or the Trust’s Liquidity

Management Policy

n Special arrangements in relation to the Investor redemptions

protocol

n The Trust’s Unit Valuation Policy

The full AIFMD remuneration disclosure can be read on page 60.

RJS Prosser BSc FCA

Chairman of the Board of the Manager

14 June 2017

2


Statement of the Chairman of the Board of the Manager

Financial Highlights and Performance

31 March 2017 31 March 2016

Net Asset Value of Trust £1,360.7m £1,312.2m

Gearing 0.0% 0.0%

Offer Price* £298.97 £303.13

Pre-Tax Annual Distribution

Accrued Per Unit as per Financial Statements £13.38 £14.30

Yield on Year’s Opening Offer Price 4.4% 5.1%

Yield on Year’s Closing NAV Price 4.7% 5.0%

Year to Year toAnnual Total Returns 31 March 31 December

2017 2016

Trust 3.8% 3.1%

AREF/IPD UK QPPFI** 3.7% 2.8%

* Offer Prices calculated as at 31 March 2017 and 31 March 2016respectively** As measured by AREF/IPD UK Quarterly Property Fund Index (All Balanced Property Fund Index) Based on NAV to NAV (“the AREF/IPDBenchmark”)

During the twelve months to 31 March 2017 (“the period”) the

Trust’s offer price declined marginally from £303.13 to £298.97, a

decrease of 1.4%. During this period, the Trust’s average pre-tax

distributions accrued per unit totalled £13.38 representing a

distribution yield of 4.4% based upon the 31 March 2016 Offer Price.

Total investment returns to unit holders during the twelve months

to 31 December 2016 were 3.1%, ahead of the AREF/IPD

Benchmark total return of 2.8%. Total Returns over the twelve

months to end March 2017 were 3.8% also ahead of the AREF/IPD

Benchmark. As at 31 March 2017 the Trust’s capital cash holdings

stood at £64m equivalent to 4.8% of net asset value compared to

6.4% at the start of the period. As at 31 March 2017 the Trust’s

property portfolio comprising of 228 properties was independently

valued at £1,253.3 million (excluding lease incentives)

(£1,210.6 million as at 31 March 2016).

Property Market Commentary From a UK perspective, the past twelve months has undeniably

been dominated by the result of the EU referendum and the

subsequent triggering of the process by which the UK will exit

the EU. With the benefit afforded by the months that have

elapsed since 23 June 2016, it is fair to observe that the impact

of the referendum result has not, as yet, had the dire economic

consequences that were widely predicted. Indeed the UK

economy generated presentable GDP growth of 1.8% during

2016. This GDP out-turn was actually weighted towards the latter

part of the year, quarter four 2016 growth being revised upwards

to an impressive 0.7%. Encouragingly, the International

Monetary Fund has also recently upgraded its 2017 economic

growth forecast for the UK, up to 2.0% from 1.5% three months

earlier and now ahead of the UK’s main economic rivals. Recent

figures show UK employment at its lowest level for more than a

decade, at 4.7%.

The Investment Advisor observes that the UK commercial

property market has weathered the impact of the referendum

result rather better than anticipated by many within the sector.

However, it should not be forgotten that immediately post the

referendum result it was the commercial property sector that was

briefly the focus of the greatest concern in terms of market impact

and potential contagion. With the perception of heightened

downside risks, retail investors in the few property funds offering

daily liquidity, rushed to withdraw their money ahead of

anticipated valuation falls. These retail property funds offering

daily liquidity were confronted with unprecedented redemption

volumes and were forced to seek rapid asset disposals. Pricing

duly fell with the MSCI UK Monthly Index recording a capital

value decline of -4.0% in the four months immediately following

the referendum result. However, redemption appetite within

these funds could not be satisfied and they were all forced to

suspend trading in order to rebuild liquidity margins in an

orderly fashion.

As the weeks elapsed this selling activity by retail funds acted to

evidence the depth of demand amongst a wide spectrum of other

investors for UK commercial property. Assets were duly sold

under increasingly competitive bidding and by November 2016

most such retail funds were successfully reopened and stable.

This market wobble, very specifically focused on a particular fund

structure, had passed. It should be stressed, particularly in the

context of this report, that this experience was confined to retail

funds sold to private investors and offering daily liquidity. The

3


Investment Advisor’s Report

London EC4

8 Lloyds Avenue

4


more numerous institutional funds, of which The Trust is

obviously one, were unaffected, benefitting from the protection of

lengthy periods for the pricing and payment of redemptions as

standard protocol.

Coming in to the first quarter of 2017, the UK commercial property

market is generally active and in good health. Investors are being

drawn to the sector’s high relative income return particularly

when compared to the ultra-low yields on UK gilts. International

investors are exploiting what they evidently perceive as a

favourable currency environment. Lending margin remains

appealingly low. Investment pricing has been rising over the

past six months in all the main sectors of the UK commercial

property market.

In keeping with the UK’s overriding economic performance,

commercial occupiers are active and willing to commit to

expansionary strategies. There have been a number of recent

and welcome high profile international commitments to the

UK including those by Nissan, Google, Apple, Tata Steel

and Facebook. Rental values have been rising over the

past six months in all the main sectors.

Taking a more in depth look at the UK commercial property

market over the specific period under review, the table below

provides detailed performance attribution for the market over the

twelve months to end March 2017. During this period the UK

commercial property market generated a positive total return of

3.8% significantly down on the comparable figure of 11.7% over

the preceding year. This decline was partly a logical, cyclical effect

foreseen in this report last year and partly a product of the

immediate, post referendum impact described above. The income

return of 5.6% was the dominant positive component of total

returns, bolstered by meaningful rental value growth of 1.6%.

A softening in investment yields contributed a negative impact

of -2.8% as the market net initial yield moved out from 5.0% to

5.3% (unless stated otherwise all statistics in this section are

taken from the MSCI UK Monthly Index).

UK Property market Performance –12 Months to end March 2017

AllRetail Office Industrial Property

Total Return 2.3% 1.4% 9.4% 3.8%

Income Return 6.1% 4.8% 5.9% 5.6%

Capital Growth -3.6% -3.2% 3.3% -1.7%

Rental Value Growth 0.6% 1.2% 3.9% 1.6%

Yield Impact -3.7% -4.2% 0.3% -2.8%

Source: MSCI UK Monthly Index March 2017.

At the sector level the most striking feature over the period has

been the pronounced outperformance of the industrial sector

with its total return of 9.4%. This impressive performance has

been centred upon strong underlying fundamentals generating

rental value growth of 3.9%, combined with the resultant

enthusiasm amongst investors to acquire industrial assets.

Growing demand for warehousing and logistical accommodation

right across the unit size spectrum is a logical product of the

growth in online retailing. A further contributory factor here has

been rising construction costs in the industrial sector, creating

headroom between prevailing rental values and the economic

rent at which fresh development can be supported.

The office sector has been comprehensively knocked off its

previous position as top performing sector, with a total return of

1.4%, below that of both the industrial and retail sectors. If there

is a single market where sentiment has been most negatively

affected by Brexit it is the central London office market. Central

London office markets had already reached new cyclical highs in

terms of rents and capital values and are the most dependent

upon international players from both an investment and

occupational perspective. These markets appear to have the most

to lose from Brexit, particularly one that restricts access to the

EU’s financial service markets. Office Landlords in central London

are extremely keen to secure tenants and affective rental values

are already under downward pressure with considerable new

development supply coming on stream.

Total returns for the retail sector as a whole were 2.3% over the

period. Conditions in the High Street remain extremely tough. UK

online sales growth continues to outstrip instore growth with the

majority of High Streets gaining little from recent positive

consumer sentiment. Growing inflationary pressures are creating

additional problems and rationalisation on the High Street

remains ongoing with recent examples including BHS, M&S,

Banana Republic, Jones, Arcadia, French Connection, 99p Stores

and Brantano. One potential source of some welcome relief for

provincial High Streets should come in the form of the recent

Rates revaluation, bringing Rate bills down in locations where

rental values have fallen over the past decade.

Occupational demand for out of town retail accommodation

continues to fair rather better. The growth in “click and collect”

formats and the appeal of car borne shopping are both supportive

of schemes with good critical mass in strong catchments. The

expansion of discounters such as Dunelm, B&M, Home Bargains,

The Range, Aldi and Lidl is continuing to maintain a reasonably

heathy leasing environment for schemes of this nature.

At the most aggregated level, the overall vacancy rate across the

whole of the UK commercial property market remained broadly

flat over the period, at 7.7%. Positively, vacancy rates in many

submarkets remain below the threshold at which trend economic

performance generates positive rental value growth.

Portfolio Strategy and ActivityThe twelve months to end March 2017 has been a period of

continued healthy investor demand for the Trust with £50.7m of

fresh equity being admitted through the issuance of new units.

These additional investments have emanated from both new

investors committing to their first exposure to the Trust and

existing investors increasing their holdings. Units in issuance

Investment Advisor’s Report(continued)

5


over the period grew 4.8%. The period also saw good liquidity in

the secondary market for units in the Trust helped by the vehicle’s

increased scale over recent years.

The continued popularity of the Trust has meant that the

Manager’s control of inflows protocol has remained in place

throughout the period under review. As communicated to unit

holders, this protocol protects the interests of investors during

periods of growth by applying prudent controls over both cash

holdings and inflows into the Trust.

As at the end of March 2017 the Trust’s property portfolio

comprised a total of 228 properties and 901 individual tenancies.

The portfolio continues to offer exceptional diversification

benefits. By way of illustration, the ten most valuable properties

represent 17% of the total portfolio value, the comparable

industry average figure being 49% (AREF/IPD Property Fund

Vision Handbook December 2016). Similarly, the ten largest

tenants in terms of total rental commitments represent 17% of

the entire portfolio rent roll compared to an industry average of

36%. This diversification is a central component of the Trust’s

investment approach and acts as a powerful risk control.

The Trust also benefits from strong diversification across its

investor base with the number of individual investors totalling

208 as at end March 2017. No single investor holds more than 6%

of the Trust’s units in issuance and the top ten investors hold a

combined total of just 39%.

During the twelve months to end December 2016, the Trust

delivered a total return of 3.1% compared to the benchmark total

return of 2.8%. The Trust’s benchmark is the All Balanced Property

Fund Index from the AREF/IPD UK Quarterly Property Fund Index

(the AREF/IPD Benchmark). Total returns to the Trust’s unit holders

during the twelve months to end March 2017 were 3.8%,

marginally ahead of the 3.7% total return for the AREF/IPD

Benchmark. As at the end of March 2017 the Trust has

outperformed the AREF/IPD Benchmark over one, three, five, ten

and fifteen years.

The Trust’s outperformance over the twelve months to end March

2017 is a product of both its fundamental approach and its

current strategic positioning. The Trust’s high income return to

investors, representing a central component of its distinctive

investment philosophy, was a major contributor to performance.

The Trust’s distribution yield as at the end of March 2017 stands

at 4.9% some 40% higher than the weighted average of 3.5% for

“other Balanced Property Funds” within the AREF/IPD

Benchmark.

At the strategic level, the Trust’s investment performance

benefited from its relatively high exposure to the industrial and

logistic sector which, as described, was the stand out performer

over the period. The Trust’s offices performed well in the context

of the office sector, being more orientated towards suburban

London and the South East, rather than central London.

The Columbia Threadneedle Investments asset management

team have also delivered additional performance gains through

refurbishment projects, receipt of beneficial planning

permissions, tactical lease surrenders with simultaneous re-

lettings as well as the ongoing engagement of all occupiers. Over

the twelve month period to end March 2017 the asset

management team successfully completed a total of 113 new

lettings and lease renewals relating to a total rent roll of £9.6m

per annum. Significant asset management initiatives are

included in the transactions and key events section that follows.

The Trust has been a highly selective buyer throughout the

period under review, acquiring a total of six properties at the

combined purchase price of £85.9m. This buying programme

applying property specific research has been consistent with the

Trust’s investment philosophy in terms of yield, diversification

and active management. The six properties acquired were

located 39% by value in the south east of England and generated

an average net initial yield of 6.4% inclusive of vendors’ rental

top ups, where provided. In terms of sector distribution, 11% by

value was in the industrial sector, 19% in the office sector, 44% in

retail warehouse sector and 26% in the leisure sector.

The Trust acquired two investments in the leisure sector over the

period increasing the portfolio’s exposure to this growing

specialist element of the market. The larger of the two was a

substantial and dominant leisure scheme in the centre of

Aylesbury, Buckinghamshire. The scheme, known as The

Exchange comprises an Odeon Cinema, three restaurants let to

Wagamama, Gourmet Burger Kitchen and Nandos together with

a popular JD Weatherspoon pub and an Anytime Fitness Gym.

The Exchange is the principal leisure offering for Aylesbury and

its affluent surroundings and all the tenants report strong trading

from this destination. The property is well let to strong tenant

covenants with an average unexpired lease term of 11 years. The

property was acquired for the sum of £13.47m reflecting a net

initial yield of 5.5%.

The second leisure investment related to a recently opened

trampoline activity centre in Wolverhampton let to Adventure

Forest Ltd. The property occupies a highly prominent position in

the immediate vicinity of Bentley Bridge Retail and Leisure Park

which represents a major retail and leisure destination. The

property was constructed in 2002, is let for a further 9 years at a

rent of £6 per sq ft and was acquired for £4.0m reflecting a net

initial yield of 7.3%.

Whilst the Trust completed two separate acquisitions in the retail

warehouse sector both actually related to two contiguous retail

parks which collectively provide the dominant out of town retail

offering for Trowbridge and its surroundings. Acquired separately

as Trowbridge Retail Park and Spitfire Retail Park the Trust has

acquired the opportunely to brand, operate and physically improve

the combined holding as a single entity offering excellent critical

mass. Trowbridge Retail Park acquired in December 2016 is let to

B&M, Home Bargains, Dreams, Matalan and KFC providing a

weighted average unexpired lease term of 9 years and an average

passing rent of £14.20 per sq ft. The purchase price of £14.85m

reflected a net initial yield of 6.7%. Spitfire Retail Park acquired in

March 2017 is let to Currys, PC World, Carpetright, Pets at Home,


6



TK Maxx, Knees and McDonald’s providing a weighted average

unexpired lease term of 5.2 years and an average passing rent of

£18.40 per sq ft. The purchase price here was £14.14m reflecting a

net initial yield of 6.3%. The amalgamated holding generates a

highly attractive net initial yield of 6.5% based upon the combined

purchase price of £29m.

Brighton

Queensbury House, Queensbury Road

The single office acquisition over the period related to

Queensberry House in Brighton. The property comprises an

attractive town centre office and retail development totalling

35,800 sq ft fronting Queen’s Road right in the heart of the City’s

amenities. The property was substantially refurbished in 2009

and is now fully let to a total of 8 tenants including Regus and

Tesco. The Brighton office market is particularly buoyant as the

City becomes an increasing magnet for the telecoms, media and

technology sectors. This growth in demand coupled with supply

side constraints have resulted in Brighton office rental levels

reaching new record highs. Queensberry House was acquired

for £12.6m reflecting a net initial yield of 6.5% and is particularly

well positioned to benefit from the City’s ongoing rental value

growth.

Finally the Trust’s sole acquisition in the industrial sector related

to an Amazon distribution centre just off junction 5 of the M5 in

Droitwich. The property totalling 113,400 sq ft was

comprehensively refurbished by the previous owner and has

been the subject of further significant investment by Amazon.

The property is let for a term of 10 years, subject to tenant’s

break option at the end of the 5th year, at an initial rent equating

to £4.90 per sq ft. The purchase price of £7.0m reflected an

attractive net initial yield of 7.5%.

The Columbia Threadneedle Investments fund management

team has continued to seek out and exploit opportunities to

affect performance enhancing asset disposals, most particularly

where special purchasers are identified. The largest disposal

related to Building 1 at Abbey View in Saint Albans. This property,

comprising 40,470 sq ft of office accommodation on three floors

was subject to a single lease expiring in February in 2017, the

tenant having already vacated. The property therefore

represented a major void, outgoings liability and refurbishment

commitment for the Trust. The sale price of £11.5m was

substantially ahead of the asset’s independent valuation and

reflected a capital value of £284 per sq ft.

The smaller of the two sales related to a solus, B&Q store on

Coypool Road, Plymouth. The lease on the property was due to

expire in four years and the tenant had already indicated there

intention to vacate. Accordingly the property was sold to an

owner occupier for a price reflecting a 9% premium to the

independent valuation, thereby mitigating exposure to a

medium term void.

As illustrated in the graphs above, and reflective of the size of the

Trust’s property portfolio, the transactional activity over the period

did not substantially alter sector exposures. The High Street

exposure fell modestly from 15.5% to 14.2% whilst the two leisure

acquisitions are reflected in the increased miscellaneous

component. The Trust’s property portfolio continues to enjoy a

Portfolio Regional Distribution (by market value)as at 31 March 2017

16%

35%

4%

9%

12%

8%

3%2%

4%3%

4%

West MidlandsSouth WestYorks/HumbersideNorth West

LondonSouth East

WalesScotland

EasternEast Midlands

North East

Source: Columbia Threadneedle Investments March 2017.

Offices Shops Industrial RetailWarehouse

Miscellaneous

Portfolio Sector Distribution (by market value)

31 March 2016

31 March 2017

0%

5%

10%

15%

20%

25%

30%

35%

Source: Columbia Threadneedle Investments March 2017.

good balance in terms of both sector and regional distribution. As

at end of March 2017 the property portfolio generated a net initial

yield of 5.8%, 50 basis points above the comparable market yield.

Outlook

As we predicted at this juncture last year, 2016 saw a pronounced

cyclical cooling in the total returns generated by the UK

commercial property market. Total return over the twelve months

to end March 2017 were 3.8% broadly comparable to the 4.6%

generated by UK gilts but heavily surpassed by the 23.6% total

return from UK equities. The FTSE 100 and the more UK focused

FTSE 250 indices have both registered new all-time highs since

the UK’s decision to leave the EU.

This more modest performance of the UK commercial property

market over the past twelve months has not diminished

institutional appetite for the sector. UK institutional investors

remain highly cognisant of the income and diversification merits

of the sector and the 10% annualised total returns delivered by

the commercial property market over the past 5 years.

Looking ahead over the medium term, the most significant

unknown for the UK, is inevitably Brexit. The medium term

outlook for the UK commercial property market encompasses a

period in which the country’s trading relationships with the EU

and the rest of the world will be redefined. How these new

trading relationships affect the UK expansion plans of

international companies as well as such plans of domestic

companies wishing to access EU markets will have a significant

bearing on overall occupational demand. It appears reasonable

to assume that the new landscape for international trade will take

a considerable period to evolve, well beyond the two year period

prescribed for the UK’s actual exit from the EU.

Looking specifically at the forthcoming year, prospects for the

UK commercial property market appear far more favourable than

were widely predicted under a ‘leave’ scenario before the

referendum. Property markets have not been blown off there

cyclical course since the June referendum result. Investor

sentiment remains very positive and occupiers are continuing to

execute expansionary strategies. Continued ultra-low base rates,

gilt yields and lending margins as well as the depreciation of

sterling will all continue to attract capital into UK commercial real

estate. The property sector’s income return looks all the more

appealing. Development activity is now likely to be far less

pronounced, being the first activity to be curtailed in the face of

heightened uncertainty. This should provide further support to

occupational markets with the possible exception of central

London offices where a major development pipeline is already in

train. In the Investment Advisor’s opinion the property market

was due a period of more modest, income dominated total

returns following the exceptional performance of the preceding

five years and that remains the outlook for 2017.

The Trust’s succeeded in outperforming its benchmark over the

year to end March 2017, aided particularly by its relatively high

distribution yield and its overweight exposure to the industrial

sector. Performance enhancing sales ahead of prevailing

valuations were also positive contributors. With market returns

likely to remain income dominated over the forthcoming year,

the Trust’s relatively high ongoing distribution yield presents a

real competitive advantage. At the sector level, the Trust’s

overweight position in the industrial sector and underweight

exposure to central London offices both appear strategically

beneficial.

Highly proactive asset management across the whole portfolio

delivered an exceptionally high volume of leasing transactions

over the past twelve months. Highlights included the letting as a

whole of the Trust’s office refurbishment on Furnival Street,

London EC4, five lettings at Lloyds Avenue London EC3 and

the conversion of a poorly trading B&Q store into a 20 year let,

Lidl supermarket in Leyton. The dedicated asset management

team have clear objectives aimed at replicating this strong

contribution to the Trust’s investment performance.

Controls and risk management remain central to the overall

management of the Trust. Liquidity will continue to be controlled

by the Manager’s inflow or outflow protocols as circumstances

require, ensuring the appropriate protection of unit holders’

interests. We also expect the Trust’s excellent portfolio

diversification to remain a significant positive in terms of

performance and risk mitigation.

7



8


Transactions and Key Events

Key:AcquisitionDisposalAsset Management

WAULT = Weighted average unexpired lease termNIY = Net Initial Yield

April 2016

Bridges Retail Park, Whitehaven

The property comprises a retail warehouse scheme including four retail units and a ‘drive – thru’ unit with a total floor area of£43,000 sq. ft. Brantano (units 4&5) appointed Administrators inJanuary 2016 and shut the premises shortly thereafter. Inanticipation of this, the Trust had already commenced re-marketing and was able to re-let the premises to Poundworld ata rent above the estimated rental value (“ERV”). (£11.50 per sq. ft.compared to the ERV of £8.25 per sq. ft.). This has improved therental tone across the scheme and assisted lease renewalnegotiations with Carpetright. This transaction eliminated the risksassociated with a void unit and contributed to a 20.7% monthlyincrease in valuation as at March 2017.

May 2016

Dewar Close, Fareham

Columbia Threadneedle Investments negotiated with FedEx UKLtd to commit to a new 10 year lease (Tenant break option on the 5th anniversary), at a rent of £255,000pa, vs an ERV of £228,900pa(£7.61 per sq. ft.). This eliminated a potential void and associatedcapital expenditure. The renewal generated an increase invaluation from £2.29m at the beginning of the year, to £3.465m atthe end of the year, which equates to a 51% increase.

June 2016

B&Q, Coypool Road, March Mills, Plymouth

The property comprises a solus retail warehouse unit totalling36,264 sq. ft. let to B&Q PLC until 22nd December 2020 at a rentreflecting £12 per sq. ft. The tenant had recently confirmed itsintentions to vacate the premises in 2017 in order to consolidatewithin its other store off Tavistock Road to the north of Plymouth.The lease is subject to five yearly RPI-linked rental increases andthe property is over-rented as a consequence. The Fund wasapproached off market by an owner occupier and as aconsequence negotiated a premium price. The property was soldfor £6.25M reflecting a NIY of 6.5% and a reversionary yield of5.7%. The sale price reflected a premium of 8.7% over the finalindependent valuation.

Redcentral, Redhill

A South East multi-let office, totalling 68,632 sq ft with groundfloor retail located in Redhill town centre. At purchase, 66% ofthe income was secured to ING (Lease) UK Ltd until March 2020.In 2013 ING vacated all four floors in advance of expiry, therebyexposing the Fund to significant void risk. Subsequently in 2015the fund surrendered two ING floors and simultaneously re-let toa 5A1 covenant at a rent of £21.50psf. In June 2016, the Fundsurrendered the two remaining ING floors and re-let to another5A1 covenant on a 10 year term (without break option) at the

passing rent (£23.50 per sq. ft). The asset management initiativemitigated a considerable void risk and served to maintain theincome at the rack rented level.

July 2016

34 Queen Street, Cardiff

The property comprises 7,200 sq. ft of retail space located in astrong retail pitch within Cardiff City Centre. The property wasformerly occupied by JD Sports who vacated the premises inSeptember 2015. Once the premises were vacant the Trust carriedout repair and reinstatement works in order to conclude a lettingto Greggs Plc for a term of ten years (tenant’s break afterfive years) at a rent of £150,000 pa. This action minimised the voidrisk and provided an income stream from a strong covenant andcontributed to a 10% enhancement of capital value.

August 2016

Units 1 – 4 Speke Approach, Wheldon Road, Widnes

The property comprises four modern industrial warehouse unitstotalling 75,000 sq ft. The former tenant of unit 4, InternationalAutomotive Components vacated their premises prior to thecontractual expiry date of the lease in August 2016. The Trustnegotiated terms to surrender the lease in June 2016 for apremium of £130,000 (including dilapidations) and immediatelyagreed terms to re-let the premises at an enhanced rentalreflecting £5.25 per sq. ft. compared to the ERV of £4.35 per sq. ft.The new lease was subject to landlord’s refurbishment works inthe sum of £160,000. These transactions contributed to a 15%increase in valuation as at March 2017.

Vale House, Reigate

The property comprises a self-contained 25,000 sq ft officesituated in the centre of Reigate acquired by the fund in March 2010. The property was let in its entirety under four separateleases to Just Retirement Management Services Ltd, expiring in2020 with a tenant’s option to determine in September 2017. InAugust 2016 the Fund consolidated all four leases into one,removing the 2017 break clause and securing a term certain untilSeptember 2022. In addition we secured a rent increase of 7.5%.The lease regear resulted in a 5% uplift in valuation.

October 2016

Building 1, Abbey View, St. Albans

The property comprises a detached office building totalling40,470 sq. ft. forming part of the Fund’s wider ownership on thepark. Building 1 was let to FCE Bank PLC who were not inoccupation and had served notice of their intention to vacateupon lease expiry in February 2017. While the St Albans officemarket remains strong, the refurbishment costs required tomaximise rental income were deemed unpalatable, and the Fundinstead sought to maximise value through a sale. The propertywas selectively marketed and competitive offers were received.The property was sold for £11.5M reflecting a capital value of£284 per sq. ft. The sale price represented a 51% premium to theapportioned independent valuation, and crystallised a grossprofit of £4.64M for the Fund.

9


132/144, High Street, Bromley

Further to the departure of Burtons / Dorothy Perkins in January2016, the fund carried out a comprehensive refurbishment to thisunit, comprising some extensive façade changes, and splitting thebuilding into four separate units. The ground and basement floorswere let to Deichmann Shoes UK Ltd on a straight 10 year lease ata rent of £225,000pa. The first floor was subsequently let to SlaterMenswear on a 15 year lease (TBO on the 10th anniversary) at arent of £82,000pa. At the time of writing, the third floor office suiteis under offer at an average annual rent of £34,360pa (£20.20psf)on a 10 year lease (TBO on the 5th anniversary). The lettings havegenerated an increase in the asset value from £9.35m at thebeginning of the year to £9.9m at the end of the year, a 6%increase in asset value. The property offers more upside uponletting of the second and third floor office space.

November 2016

The Exchange, Aylesbury

The property comprises a town centre dominant leisure schemedeveloped in 2000 totalling 64,711 sq. ft. located midwaybetween the Hale Leys Shopping Centres and the WatersideTheatre and adjacent Waitrose/Travelodge. The property is thetown’s principal leisure offering and comprises a six screencinema, a parade of three restuarants, a pub and a gym. Theproperty is fully let to six tenants including Odeon, Wagamama,Gourmet Burger Kitchen and Nandos, providing a WAULT of 13.2 years to lease expiries and 11 years including break options.All tenants report strong trading performance and offer the Fundstrong covenants. Future consented developments, including anew complimentary restaurant block opposite, will add to thislocation’s dominance within the town centre over theshort/medium term. The property was acquired for £13.47Mreflecting a headline NIY of 5.5% and a capital value of £208 persq. ft. overall.

Aylesbury

The Exchange

Trowbridge

Trowbridge Retail Park

December 2016

Trowbridge Retail Park, Trowbridge

The property comprises a purpose built retail park located to thesouth of Trowbridge town centre providing five units totalling75,251 sq. ft. The scheme, together with the adjoining SpitfireRetail Park, dominates a significant catchment which includesMelksham and Warminster. The property is let to B&M, HomeBargains, Dreams, Matalan and KFC providing a WAULT of 10.0 years to lease expiries (9.3 years including break options)at a total contracted rent of £1,065,857 per annum reflecting alow average rent of £14.16 per sq. ft. The units are broadly rackrented and all tenants report strong trading performance. Theproperty was acquired for £14.85M reflecting a headline NIY of6.7% and £197 per sq. ft. overall.

February 2017

Air Space, Well Lane, Wolverhampton

The property comprises a modern warehouse buildingconstructed in 2002 providing a total of 51,934 sq. ft. located in anestablished retail / leisure / commercial location to the north eastof Wolverhampton city centre. The property has been let toAdventure Forest Ltd on a 10 year lease (8.7 years unexpired) ata rent reflecting £6 per sq. ft. subject to an RPI-linked rent reviewat the end of the 5th year. The tenant has received planningconsent to use the property for leisure uses (D2) and operates theproperty as an indoor trampolining activity centre. Should thetenant vacate, the planning consent reverts to standard industrialwarehouse use. The passing rent is in line with the ERV of theproperty in its current use however the ERV for industrial uses ismarginally lower at circa £5.50 per sq. ft. The property wasacquired from a private investor for £4.0M reflecting a NIY of7.3%, rising to a minimum of 7.7% at the August 2020 rent review.

Units 20–23, Monmer Close, Willenhall

This industrial property comprises 35,000 sq. ft. across four unitsand is located in the heart of the industrial region of theMidlands. The former tenant of unit 20, Lonestar Fasteners,vacated their premises prior to the contractual expiry of the leasein June 2016. The Trust negotiated terms for an early surrender ofthe lease for a premium of £85,000 to include dilapidations in

Transactions and Key Events(continued)

10


March 2016 and immediately refurbished the premises. The Trustsubsequently re-let the premises to Orwak Easi UK Ltd for a termof ten years (tenant’s break after five) at an enhanced rentalreflecting £4.25 per sq. ft. compared to the previous rental of£3.30 per sq. ft. This action minimised the void risk andcontributed to the enhancement of the capital value of 9 % at theyear end compared to the position immediately prior to theconclusion of the new lease.

2150 Century Way, Thorpe Park, Leeds

The property comprises a total of 31,000 sq. ft. over ground andtwo upper floors. The building is located on a popular businesspark to the east of the city centre. The former tenant of the firstfloor (Sopra Banking) relocated to Sheffield in autumn 2015. TheTrust negotiated a full dilapidation settlement of £257,000 andcompleted a full refurbishment of the premises at a cost of£350,000 in April 2016. The Trust concluded a new letting of thisfloor to Bellway Homes Limited in February 2017 for a term often years (tenant’s break after five years) at a rent of £86,700 pareflecting £17.00 per sq. ft. These actions contributed to a 21%increase in the valuation as at March 2017.

March 2017

Queensbury House, 104-109 Queen’s Road, Brighton

The property comprises an attractive town centre office and retailbuilding totalling 35,851 sq. ft. arranged over basement, groundand six upper floors. The property was built in the mid-1960s andsubstantially refurbished in 2009 (including all mechanicals &electricals and the addition of the 6th floor). The property is verywell located circa 250m from the main line rail station and withineasy walking distance of Brighton’s amenities. The property isfully let to eight tenants including Regus and Tesco, providingthe Fund with a WAULT of 5 years to lease expiries (3.4 yearsincluding break options) at a low average rent of £24.30 per sq. ftwhich compares favourably against an average ERV of £26.12 per sq. ft. Regus plc, the majority office occupier, pay rentrelated to quarterly turnover, subject to various caps and collars.33% of the income generated by the property is subject to someform of indexation (predominantly uncapped RPI increases)which will provide rental uplifts in 2018/2019. The property wasacquired for £12.6M reflecting a NIY of 6.5% and a capital valueof £351 per sq. ft.

Spitfire Retail Park, Trowbridge

The property comprises an out of town retail park locatedadjacent to Trowbridge Retail Park which the Fund acquired inDecember 2016. The scheme provides five units and a drive-thrurestaurant totalling 51,338 sq. ft. let to Currys PC World,Carpetright, Pets at Home, TK Maxx, Knees and McDonald’sproviding a WAULT of 8.4 years to lease expiries (5.2 yearsincluding break options) at a total contracted rent of £945,051 pa.reflecting a low average rent of £18.41 per sq. ft. The units arebroadly rack rented and all tenants report strong tradingperformance. The property was acquired for £14.14M reflecting aheadline NIY of 6.3% and £275 per sq. ft. overall.

On completion of the purchase, the property was amalgamatedwith the contiguous Retail Park to create a combined assetvalued at £29.0M and a blended WAULT of 9.1 years. The

combined purchases facilitate a number of asset managementinitiatives which will maintain and enhance value.

Droitwich

AmazonWarehouse

Droitwich 125, Hampton Lovett Industrial Estate, Droitwich

The property comprises a well located industrial warehousetotalling 113,442 sq. ft. located just off the A442, 3 miles from theM5 junction 5. The property was constructed in the late 1980’sand was comprehensively refurbished by the seller in 2016 at acost of circa £925,000. The property is let to Amazon UK ServicesLimited on a new 10 year lease from 12 September 2016 (subjectto a tenant break at the end of the 5th year and a simultaneousCPI-linked rent review) providing 9.7 years to expiry / 4.7 yearsto break. The property is part of Amazon’s parcel network huband provides the Fund with a high and sustainable day oneincome yield secured against a strong covenant with the benefitof a guaranteed rental increase at rent review. The property was acquired for £7.0M reflecting a headline NIY of 7.5% and£62 per sq. ft. overall.

40 Furnival Street, London, EC4

This self-contained office block in London’s mid-town wascomprehensively refurbished, to a full Cat A standard,incorporating a remodelled façade, reception and VRV airconditioning.

After a short marketing campaign, the building was let in itsentirety to Idox Plc, on a 10 year lease with a break in the 5th year.Idox are paying a rent of £515,000pa (£56 per sq. ft overall), vs anERV of £510,200pa (£55 per sq. ft overall). The letting generatedan increase in value from £6.2m at the beginning of the year, to£9.5m by the end of the year, equating to a 53% increase.

Transactions and Key Events(continued)

11


Bristol

10 Queen Square

11

Property PortfolioOffices

Principal Rental Income Next RentBetween £1 million and £2.5 million in Value Tenants per annum Review

NottinghamLoxley House Freehold detached modern office building constructed Various £166,208 03/2020in 1997 over ground and first floors, totalling 12,271 sq. ft. with 43 car parking spaces.

Tunbridge Wells Lonsdale Gate Freehold detached self-contained office building with D.G. White, H.A. Krafft £140,220 03/2019accommodation on ground and three upper floors, totalling 9,600 sq. ft.

Egham

65 High Street

Between £2.5 million and Principal Rental Income Next Rent £5 million in Value Tenants per annum Review

Bristol Royal London BuildingsFreehold property built in the 1930’s, comprising offices Various £250,846 08/2017 over first to sixth floors with retail at ground floor level.The property totals 25,437 sq. ft.

Bristol 10 Queen Square Leasehold period office building extensively refurbished Various £238,248 12/2019over seven floors, totalling 17,838 sq. ft.

Chertsey Rutherwyk House Freehold detached office building constructed in 1998 Portman Travel Ltd £233,500 N/Aover ground and two upper floors together with surface car parking areas. The property totals 11,347 sq. ft.

Dorking Parsonage Square Freehold office accommodation comprising five self-contained Various £322,753 12/2017units on ground to second floors, totalling 22,714 sq. ft.

Egham Heathrow Business Centre Freehold purpose built office building constructed in 1999 Vacant £0 N/Acomprising accommodation on ground, first and second floors, totalling 11,884 sq. ft.

Guildford Carriage House & Barratt House Freehold. Two office buildings on a campus development Various £126,810 11/2018constructed in the late 1980s. Arranged over ground andfirst floors with surface car parking areas. The property totals 15,161 sq. ft.

12


Offices(continued)


HaydockChase House, 16 The Parks Freehold high quality self-contained office building within Speedy Support Services Ltd £248,138 N/A‘The Parks’ business park. Constructed in 1995 and recently refurbished, totalling 16,196 sq. ft.

Maidenhead Belmont Place Freehold detached office building constructed in 1999 Various £200,000 06/2018over ground and first floors with surface and under-croft car parking areas. The property totals 12,733 sq. ft.

Slough Rath House Freehold detached office building constructed in 1990 QA-IQ Group Ltd £205,000 12/2019over ground and two upper floors totalling 13,947 sq. ft.

Twickenham 15/16 Church Street Freehold refurbished office building arranged over ground, Various £336,000 06/2020first and second floors, and a single retail unit fronting Church Street, together totalling 12,741 sq. ft.

Weybridge 58 Church Street Freehold self-contained office building construed in the 1990s. NHS Property Services Ltd £260,796 01/2020The property totals 10,128 sq. ft. over ground and first floors.

Twickenham

15/16 Church Street

13


Principal Rental Income Next Rent Over £5 million in value Tenants per annum Review

Brentwood Juniper House & Jupiter House, Warley Hill Business Park Freehold. Two adjoining multi-let, self-contained office Various £729,362 01/2018buildings totalling 37,917 sq. ft.

Brighton Queensbury House, 104-109 Queens Road Freehold town centre office and retail building totalling Various £818,327 03/201835,951 sq. ft. over basement, ground and six upper floors.

Bromley Royal Court, 81 Tweedy Road Freehold self-contained headquarters office building arranged Splash Damage Ltd £447,966 11/2018on ground and three upper floors totalling 25,130 sq. ft.

Chertsey Concourse House, Fox Lane Freehold three storey L-shaped office building constructed Kone Plc £400,000 11/2020in 2000 with undercroft parking totalling 16,879 sq. ft.

Edinburgh The Stamp Office Freehold newly developed office building arranged over Various £794,528 02/2019seven levels with basement car park, totalling 51,201 sq. ft.

Edinburgh 1-6 Atholl Crescent Freehold property comprising six town houses in a Various £685,210 01/2019Georgian crescent totalling 36,840 sq. ft.

Epsom The Wells, 3-13 Church Street Freehold self-contained refurbished office building Atkins Ltd £513,097 N/Aconstructed in 1989 over ground and three upper floors totalling 25,501 sq. ft.

Fareham 4500 Parkway, Solent Business Park Freehold headquarters style office building constructed Various £669,811 11/2019in 1993 and refurbished in 2008. Total floor area of 56,033 sq. ft. with 364 surface car parking spaces.

Farnham Millennium Centre, West Street Freehold office development completed in 2000, comprising Various £356,686 06/2018three buildings over ground, first and second floors, totalling 31,404 sq. ft.

Farnham

Millennium Centre, West Street

Offices(continued)

14



FrimleyArchipelago Business ParkFreehold property comprising a campus of three modern Various £472,264 06/2017office buildings constructed in the early 1990’s, split into six units totalling 54,572 sq. ft.

Godalming Old Mill Business Park Freehold office complex of four buildings, one being a period Various £682,209 09/2017former mill and the most recent constructed in 2003. Each is over ground, first and second floors, apart from the Annex which is over ground and first floors. The property totals 38,646 sq. ft., together with car parking.

Guildford Bramley House Freehold recently constructed high specification office Various £303,713 05/2019building on ground, first and second floors totalling 19,591 sq. ft., together with car parking.

Leeds Elizabeth House, Queen StreetFreehold detached refurbished office building over Various £483,636 12/2020ground and four upper floors with 17 car parking spaces.The property totals 25,576 sq. ft.

Leeds2150 Century Way, Thorpe ParkLeasehold detached office building constructed in 2004 Various £386,964 10/2020over ground and two upper floors totalling 31,000 sq. ft.

London 8-9 Lovat LaneFreehold mid-terrace office building built in 1984, Various £307,972 12/2017now refurbished and re-let, totalling 8,026 sq. ft.

London EC1

Parchment House

Offices(continued)

15


floors totalling 15,648 sq. ft. Principal Rental Income Next Rent

Over £5 million in value Tenants per annum Review

London 8 Lloyds AvenueFreehold Grade II Listed mid terraced building originally Various £231,985 10/2019constructed in early 1900 and last refurbished in 1998, arranged over basement, ground and five upper floors, totalling 20,136 sq. ft.

London Avon House Leasehold office building over 6 floors, constructed Various £697,867 07/2017circa 1990 totalling 31,001 sq. ft.

London Parchment House Freehold converted Victorian warehouse over seven Various £487,178 N/Afloors totalling 15,648 sq. ft.

London 5,6 & 7 D’Arblay Street Freehold property consisting of two adjoining refurbished Steam Motion & Sound UK Ltd £333,000 05/2019five storey office buildings totalling 6,984 sq. ft.

London 40/42 Furnival Street Freehold City of London office building totalling 9,142 sq. ft. Vacant £0 N/A

London Warwick House Leasehold office and retail property substantially refurbished Various £735,372 07/2017 behind the façade and arranged over lower ground, ground and five upper floors, totalling 21,863 sq. ft.

London 4/5 Bedford Chambers Freehold period terrace office building arranged over New York University in London £455,000 10/20205 floors, including basement level totalling 9,359 sq. ft.

London 46-48 Foley Street Freehold office building over lower ground, ground and Various £1,098,096 03/2018four upper floors, extensively refurbished in 2008 to grade-A standard totalling 20,062 sq. ft.

London W1

4/5 Bedford Chambers

Offices(continued)

Staines

Magna House

16



Redhill Redcentral, High Street Freehold modern high specification office and retail building Various £1,048,997 02/2019arranged over ground, podium and five upper floors. The property totals 68,113 sq. ft. together with 131 car parking spaces.

Reigate Vale House, Roebuck CloseFreehold modern office building over ground and Various £558,600 09/2022two upper floors, totalling 25,379 sq. ft. together with 72 car parking spaces.

Rickmansworth Cardinal Point, Park Road Freehold three storey office building. Property totals Regus plc £571,545 12/201925,570 sq. ft. and has 65 car parking spaces at the rear.

Sheffield Office 1, The Square Leasehold modern detached office building constructed Carillion Construction Ltd £824,241 N/Ain 2008 over six storeys, totalling 43,590 sq. ft.

Solihull Dominion Court Leasehold, three self-contained terraced office buildings Various £193,445 05/2020over basement, ground and two upper floors together with rear decked car park. The property totals totals 28,073 sq. ft.

St Albans Abbey View Freehold 1980’s office development over six floors Various £1,249,863 08/2019totalling 11,283 sq. ft.

Staines Magna House Freehold refurbished office building over four floors with Tax Computer Systems Ltd £0 06/2018secure onsite parking on two deck levels, totalling 26,873 sq. ft.

Swindon Auckland House Freehold newly developed office building over ground BP International Ltd £653,589 N/Aand two upper floors totalling 36,493 sq. ft.

Offices(continued)


Thames Ditton Units 1-7 AC Court Freehold office park comprising seven units extending Various £665,823 09/2017over ground and two upper floors with car parking, totalling 30,793 sq. ft.

Uxbridge Allport House Freehold refurbished office building arranged over ground Allport Cargo Services Ltd £394,000 N/Aand first floor with 64 car parking spaces. The property totals 16,337 sq. ft.

Uxbridge Try House Freehold modern office building over ground and Various £528,950 N/Atwo upper floors, totalling 21,398 sq. ft.

Weybridge Idis House, Churchfield Road Freehold detached office building constructed in 2004 Idis Ltd £0 05/2021over ground, first and second floors totalling 15,660 sq. ft. with 48 secure car parking spaces.

Wimbledon KFH House Freehold detached L-shaped office building constructed Kinleigh Ltd £400,000 06/2017in 1986 over five floors totalling 15,796 sq. ft.

Offices(continued)

17


Wimbledon

KFH House

18


Principal Rental Income Next Rent Less than £1 million in Value Tenants per annum Review

Eastleigh 42-50 High StreetFreehold two storey building with retail units at ground level Pampurred Pets Ltd £45,000 10/2017and office accommodation above. The property totals 1,573 sq. ft.

Great Yarmouth 8-9 King StreetFreehold end of terrace building comprising a retail unit Shape London £0 N/Aon the ground floor and ancillary storage on basement, first and second floors. The property totals 2,966 sq. ft.

Halifax 12-16 Market Street Freehold retail building on a corner plot with sales area on Heron Foods Ltd £78,000 04/2018ground and first floors and ancillary second floor accommodation, totalling 7,279 sq. ft.

Hinckley18 Castle StreetFreehold mid terrace building comprising a ground floor Specsavers Optical Superstores Ltd £31,500 09/2018retail area with rear staff room and a first floor stock room, totalling 2,745 sq. ft.

HitchinTesco Express, Lyon CourtLeasehold retail supermarket unit forming part of the Tesco Stores Ltd £50,000 05/2022ground floor of a converted former office building. The property totals 25,297 sq. ft.

Hull22 King Edward StreetFreehold terraced building providing retail sales space on Heaven Independent Cafes Ltd £35,000 08/2022ground floor with ancillary accommodation on basement, first and second floors. The property totals 3,242 sq. ft.

Kettering41/43 High StreetFreehold mid terrace retail unit with first floor ancillary Savers Health & Beauty Ltd £32,500 11/2017accommodation, totalling 4,389 sq. ft.

Leamington Spa116 The ParadeFreehold mid terrace property arranged over five floors Various £65,250 01/2018with ground floor retail sales and ancillary upper parts. The property totals 4,920 sq. ft.

Llandudno81-83 Mostyn StreetLong Leasehold, five storey premises with retail accommodation Various £80,000 N/Aover basement, ground and first floors. The two upper floors of the property provide residential accommodation. The property totals 3,640 sq. ft.

Llanelli13 Stepney Street Freehold mid terrace retail unit with ancillary first floor Caversham Trading Ltd £22,500 01/2020accommodation totalling 3,039 sq. ft.

Mansfield14-18 Stockwell Gate Freehold large mid terrace retail store with first floor ancillary Superdrug Stores Plc £107,500 N/Aaccommodation totalling 6,264 sq. ft.

Plymouth52 New George Street Leasehold, single let retail unit over ground to second floors, First Sport Ltd £126,000 N/Atotalling 4,004 sq. ft.

Portsmouth 179 Commercial Road Freehold retail unit on ground, first and second floors, Shoe Zone Ltd £65,000 N/Atotalling 2,943 sq. ft.

Retail


Shrewsbury3-4 Castle StreetFreehold terraced retail property on ground and CEX Ltd £55,000 01/2019two upper floors, totalling 1,859 sq. ft.

Southport 355-357 Lord StreetLong Leasehold terraced retail property on ground and Felldale Retail Ltd £57,500 N/Afirst floors totalling 3,356 sq. ft.

Stockport65-71 Princes StreetFreehold terrace of three retail units. Numbers 65-59 Various £12,000 03/2018are arranged over ground and first floors and Number 71 is arranged over basement, ground and two upper floors. The property totals 8,738 sq. ft.

Stockport84-86 Princes StreetFreehold terraced property constructed in the mid 1920’s Poundworld Retail Ltd £65,000 09/2019as a cinema but now converted to retail use. Arranged as retail sales over basement, ground and first floors, totalling 7,074 sq. ft.

Wrexham10-11 Hope Street Two freehold adjoining retail units arranged on ground and First Choice Ltd £0 N/Afirst floors, totalling 3,571 sq. ft.

Between £1 million and Principal Rental Income Next Rent £2.5 million in Value Tenants per annum Review

Bishop Auckland35-45 Newgate Street & 1-3 Victoria AvenueFreehold terraced block of seven retail units over part three and Various £224,050 09/2020part four storey’s together with part two and part three storey former club premises to the rear. The property totals 32,190 sq. ft.

Blackpool7-15 Church StreetFreehold modern four storey retail unit occupying a corner Various £101,000 06/2018plot. Split and let in two units with retail on ground, basement and part first floors with second floor ancillary accommodation. The property totals 9,301 sq. ft.

Boscombe590-598 Christchurch RoadFreehold property comprising two mid-terrace retail Various £100,000 07/2019units each with ancillary first and second floors. The property totals 10,048 sq. ft.

Cardiff34 Queen StreetFreehold retail unit constructed in the 1960’s over five levels Greggs Plc £150,000 07/2021with retail sales areas over basement, ground and part first floors, totalling 7,200 sq. ft.

Carlisle50-54 Scotch StreetFreehold retail unit constructed over part two and part Various £27,800 03/2022three storeys. Further three storey building to the rear, with frontage to Rosemary Lane. The property totals 10,716 sq. ft.

Retail(continued)

19



Chichester34-35 East StreetFreehold period Grade II listed mid terrace three storey The Body Shop International Plc £91,925 N/Abuilding with ground floor retail sales and ancillary upper floors.

Derby20-25 Albert StreetFreehold terraced block of four retail units over ground and Various £65,250 11/2017first floors, totalling 12,684 sq. ft.

Falkirk119-127 High StreetTwo freehold period terraced retail units constructed over Various £111,300 01/2021ground and two upper floors totalling 13,463 sq. ft.

Kingston Upon Thames21-25 London RoadLeasehold, ground floor retail unit built in 2003. Wilko Retail Ltd £109,999 06/2018The property totals 6,542 sq. ft.

Kirriemuir, Dundee29/33 The RoodsFreehold single storey and part two-storey supermarket unit The Co-operative Group Ltd £157,401 N/Aconstructed in the early 1990s. The property totals 12,866 sq. ft.

Lincoln8&9-12 CornhillFreehold mid terrace property comprising two retail units, Various £126,000 N/ANo 8 arranged over two floors with ground floor retail sales and ancillary first floor and No 9/12 arranged over three floors with ground floor retail sales and ancillary first and second floors. The property totals 5,630 sq. ft.

LiskeardCo-op, Barras Street Freehold supermarket unit with first floor and basement The Co-operative Group Ltd £132,290 04/2034ancillary accommodation. The property totals 10,782 sq. ft.

London WC219 New Row, Covent GardenFreehold terraced building comprising a retail unit on the Various £96,650 05/2020ground floor with two flats and a maisonette above.

Retail(continued)

20


Chichester

34-35 East Street


LoughboroughImperial BuildingsFreehold block of three retail units on ground floor only, Various £122,750 03/2018with self-contained first floor accommodation.The property totals 6,963 sq. ft.

Nottingham1 St Peters SquareFreehold retail property arranged over basement, ground, Bank of Scotland Plc £113,350 10/2018first and second floors and refurbished in 1993, totalling 4,679 sq. ft.

Southampton179-180 High Street Freehold retail unit over basement and ground floors with Superdrug Stores Plc £125,500 N/Atwo upper floors of residential, totalling 8,366 sq. ft.

Southport485-495 Lord Street Long Leasehold property comprising three shop units Various £131,700 N/Aarranged over ground and two upper floors, totalling 9,105 sq. ft.

Southsea35-37 Palmerston Road Leasehold retail unit on ground, first and second floors, Iceland Foods Ltd £82,500 01/2020totalling 8,436 sq. ft.

Torquay22-28 Union StreetFreehold terrace of five ground floor retail units with ancillary Various £196,000 02/2018first and second floor accommodation, totalling 9,307 sq. ft.

Walsall48-50 & 52 Park Street Two period retail units forming the end of a town-centre retail Various £133,000 02/2020 terrace, over basement, ground and two/three upper floors. The property totals 9,802 sq. ft.

Retail(continued)

21


Nottingham

1 St Peters Square


Weston Super Mare31-35 High StreetFreehold retail unit in corner position arranged over ground, Various £144,500 08/2020first and second floors, totalling 7,290 sq. ft.

Weymouth63-64 St Mary Street & 40 St Thomas street Freehold mid terrace property comprising a large ground 99p Stores Ltd £125,000 N/Afloor retail unit with first and second floor ancillary accommodation to St Mary street and first, second and third floor residential accommodation to St Thomas Street which has been sold on a long leasehold. The property totals 7,547 sq. ft.

WickSomerfield, Macleay Lane Freehold supermarket unit totalling 16,098 sq. ft. The Co-operative Group Ltd £137,190 N/A

Worthing7-11 Montague Street Freehold retail unit on ground floor with office and storage Nationwide Building Society £60,000 N/Aaccommodation on first, second and third floors and small basement. The property was originally constructed as part of the Royal Arcade around the mid 1920’s. The property totals 5,359 sq. ft.

Retail(continued)

22


Between £2.5 million and Principal Rental Income Next Rent£5 million in Value Tenants per annum Review

Andover11-19 High StreetParade of two modern and one period retail units. Arranged Various £288,750 03/2018over ground floor with ancillary accommodation for 11-15 over 1st and 2nd floors. The property totals 32,280 sq. ft.

Chichester79-80 North StreetTwo freehold adjoining retail units comprising ground floor Robert Dyas Holdings Ltd £235,000 N/Asales area with storage on two upper storeys, totalling 7,745 sq. ft.

Glasgow123-133 Sauchiehall StreetThree retail units within a 4 storey Grade II listed building, Various £107,500 03/2019largely of sandstone construction, held freehold. The property totals 23,013 sq. ft.

Guildford1-5 Trinity Gate, High StreetLong Leasehold, five modern lock up retail units constructed Various £255,500 08/2020in 2004, upper floor residential block separately sold off, totalling 4,318 sq. ft.

Leeds32 Lands Lane & 13, 25 & 27 Thornton’s ArcadeFreehold former parade of shops including two units The Clinkard Group Ltd £242,000 N/Afronting Thornton’s arcade combined into one unit over ground, basement and two upper floors. The property totals 8,075 sq. ft.

Middlesbrough51-67 Linthorpe RoadFreehold. Three storey building divided into parade Various £315,500 01/2018of 3 retail units. Constructed in 1958.

Swansea254-255, 256, 257, 259, 260 Oxford StreetLong leasehold, non-contiguous parade of give retail units Various £477,750 09/2017of post war construction over part basement, ground and two upper floors.

Retail(continued)

23


Chichester

79/80 North Street


Weston Super Mare94-102 High StreetFreehold block of nine retail units arranged on ground Various £274,100 08/2017and first floors, totalling 18,180 sq. ft.

Worcester45 High Street Freehold period brick retail building over basement, Fraser Hart Ltd £147,500 10/2019ground and four upper levels, totalling 10,580 sq. ft.

Worthing44-46 Montague StreetTwo freehold adjoining self-contained retail units, Various £325,500 07/2019totalling 14,725 sq. ft.

Retail(continued)

24


Worthing

40-46 Montague Street

Worcester

45 High Street

Principal Rental Income Next RentOver £5 million in Value Tenants per annum Review

Ascot39-51 StreetFreehold. An unbroken parade of 11 ground floor retail Various £741,867 09/2017units with self-contained arranged over two upper floors.The property totals 34,500 sq. ft.

Bromley132-144 High StreetFreehold / part leasehold retail and office building comprising Various £461,000 10/2021three retail units and separately let upper floor offices,totalling 45,476 sq. ft.

Canterbury5-7 The Parade & 10-11 Mercery LaneFreehold retail parade of six units with residential Various £576,200 06/2017accommodation above, totalling 10,764 sq. ft.

CrowboroughSybron WayFreehold supermarket unit totalling 27,411 sq. ft. with Tesco Stores Ltd £395,416 11/202095 car parking spaces.

DerbyUnits 1-6 & 2-6, Albion Street Freehold block of seven retail units over ground Various £897,300 07/2019and first floors, totalling 31,903 sq. ft.

DronfieldDronfield Shopping CentreFreehold shopping centre incorporating two flats, totalling Various £578,740 06/201738,058 sq. ft.

Edinburgh49 George StreetFreehold retail unit on basement, ground, first and second Robinson Webster £284,000 12/2017floors, including a second floor flat, totalling 7,064 sq. ft. (Holdings) Ltd

Harlow37-39 Broadwalk Freehold property comprising two retail units on ground and Various £318,250 01/2019first floor and self-contained offices on first to fourth floors, totalling 64,626 sq. ft.

Retail(continued)

25


Canterbury

5-7 The Parade

Edinburgh

49 George Street

Principal Rental Income Next RentOver £5 million in Value Tenants per annum Review

Kingston upon Thames146-152 Clarence StreetFreehold retail property constructed in 1950s. Ground floor Wilko Retail Ltd £580,000 06/2018sales area with ancillary storage on second and third floors.The property totals 48,388 sq. ft.

Salisbury22-30 High StreetFreehold large retail unit over basement, ground and Various £400,000 03/2021first floors totalling 41,366 sq. ft.

Swindon10-17 & 19a Regent StreetFreehold terrace of five town centre retail units predominantly Various £736,001 N/Aover ground and two upper floors with near car parking area.

Retail(continued)

26


Kingston Upon Thames

146-152 Clarence Street

Principal Rental Income Next RentLess than £1 million in Value Tenants per annum Review

IrlamUnit B Falcon Court, Northbank Industrial EstateFreehold detached warehouse with ancillary offices, WIKA Instruments Ltd £68,649 10/2018totalling 13,125 sq. ft.

Industrial

27



LincolnPlot 12 Sadler RoadFreehold modern detached single storey industrial unit Parcelpoint Ltd £125,000 09/2019with integral offices, totalling 26,480 sq. ft.

RedditchUnit 46, Heming RoadFreehold single storey industrial unit with integral Entaco Ltd £105,010 N/Atwo storey offices constructed in the 1970’s, totalling 20,952 sq. ft.

SheffieldPresident WayFreehold modern single storey industrial unit with integral Liberata UK Ltd £143,000 12/2019three storey offices to the front totalling 31,407 sq. ft.

WakefieldUnit C1 Telford WayFreehold modern detached single storey warehouse Saint-Gobain Building £90,000 N/Aincorporating two storey offices, totalling 19,504 sq. ft. Distribution Ltd

WarringtonUnits 4A-D Barleycastle Trading EstateFreehold terrace of four warehouse units constructed in the Various £180,000 12/2017early 1980’s. Units A, B and C form a single unit with Unit D remaining separate. The property totals 40,525 sq. ft.

WillenhallMonmer CloseFreehold industrial estate of four small terraced units Various £96,500 01/2019constructed in the late 1970’s with integral ground andmezzanine office accommodation totalling 34,734 sq. ft.


BirminghamBooker 2 Cranby StreetLong leasehold cash and carry unit constructed in 2000 with Booker Ltd £255,000 07/2020a total floor area of 43,162 sq. ft. Located within 2.49 securesite with 92 car parking spaces.

CroydonPioneers Industrial EstateFreehold modern industrial estate comprising 5 units, Various £262,815 08/20193 adjoining and 2 detached, totalling 31,200 sq. ft which includes 65 secure car parking spaces.

FarehamUnit 5E Dewar Close, Segensworth WestLong leasehold modern warehouse constructed in 1990, Fed Ex UK Ltd £255,000 02/2023totalling 30,073 sq. ft.

FarnboroughUnit C1, Southwood SummitFreehold detached industrial unit constructed in the 1980s ITW Ltd £287,500 N/Awith a total area of 32,600 sq. ft. The secure yard has 85 secure car parking spaces.

GuildfordBridge Park, Merrow LaneFreehold multi-let industrial estate comprising 7 units Various £274,800 10/2017arranged in 3 terraces with a total floor area of 28,200 sq. ft with 54 external car parking spaces.

HayesSwallowfield CentreFreehold terraced building divided into three Various £241,794 N/Aindustrial/warehouse units of steel portal frame construction, totalling 24,111 sq. ft.

HoddesdonBibby Unit, Belcon Industrial EstateFreehold distribution/warehouse unit with two storey Bibby Distribution Ltd £288,000 06/2017office building attached, constructed in 1991 andtotalling 49,015 sq. ft.

LeedsNetwork House, Middleton GroveLeasehold – held on a 999 year virtual freehold from 30/09/2002 DPD Group UK Ltd £292,978 09/2017at a peppercorn rent. A detached twin-bay warehouseconstructed in 1995 with yard, turning and car parking areas.The property totals 68,427 sq. ft.

LeedsUnit 9 Bruntcliffe AvenueFreehold single storey distribution/warehouse unit Nobia Holdings UK Ltd £322,072 N/Awith two storey ancillary office accommodation. Constructed in 1990s. The property totals 80,629 sq. ft.

LeedsRavens Park Units 2001 & 2002Freehold. Two detached light industrial/warehouse Various £327,908 08/2019units built in 2001 with ancillary office accommodation.Total floor area 57,637 sq. ft.

MotherwellUPS Glasgow CentreAbsolute ownership – Purpose built single storey distribution UPS Ltd £353,682 N/Aunit with ancillary accommodation constructed in 2004.The property totals 47,656 sq. ft. with 70 secure on site car parking spaces.

NormantonUnit A3 Foxbridge WayFreehold distribution warehouse constructed in the late DX Network Services Ltd £194,700 N/A1990’s totalling 43,253 sq. ft.

Industrial(continued)

28



NorthamptonCrow Lane Industrial EstateFreehold industrial estate of seven units arranged in Various £269,730 03/2018two terraces and one stand-alone unit.The estate totals 55,780 sq. ft.

NorwichFrenbury Industrial EstateFreehold. Multi-let industrial/trade counter estate. Comprises Various £333,346 09/20183 units each with a secure yard, with a total floor area of 75,590 sq. ft. The total site area is 4.78 acres with a sitecoverage of 35%.

ReadingHeron Industrial EstateFreehold purpose built, multi let industrial estate totalling Various £290,214 08/2017approximately 46,839 sq. ft, arranged as 7 units. The property has a total site area of approximately 2 acres with a site density of 55%.

SawstonDales Manor Business ParkFreehold multi- let mixed industrial and office business park Various £265,525 08/2017comprising nine industrial units in two blocks and four officeunits. The property totals 42,967 sq. ft.

StevenageAspect One, Gunnels WoodFreehold headquarters production/warehouse building Zeus Packaging (UK) Ltd £275,000 09/2018with fitted offices at first floor totalling 40,852 sq. ft.

StevenageUnits 1-6 Pin Green Industrial EstateFreehold industrial estate of six units each with ancillary Various £208,500 09/2019office accommodation, totalling 42,245 sq. ft.

WandsworthUnit 2, Wandsworth Trading EstateFreehold single storey semi-detached warehouse Colefax Fowler Group Plc £195,520 12/2020constructed circa 1970, totalling 17,422 sq. ft.

WellingboroughFaraday Court, Park Farm Industrial EstateLong leasehold 24 unit industrial estate built in the Wellingborough Borough £239,915 N/Amid-1980’s in four terraces totalling 77,182 sq. ft. Council

WellingboroughBaird Court, Park Farm Industrial EstateLeasehold multi-let industrial estate totalling 61,992 sq. ft. Various £245,929 12/2017

WidnesUnits 1-4 Speke ApproachFreehold estate of four industrial/warehouse units Various £205,790 09/2017totalling 74,510 sq. ft.

WolverhamptonParkside Industrial EstateFreehold estate of five modern industrial units with Various £274,638 07/2017ancillary office space. The property totals 98,276 sq. ft.

Wooburn GreenAvery Distribution UnitFreehold industrial detached distribution Avery Dennison UK Ltd £260,000 12/2017unit totalling 30,682 sq. ft.


29


Principal Rental Income Next Rent Over £5 million in Value Tenants per annum Review

AylesburyPremus, Coldharbour WayFreehold multi-let industrial estate of seven units Various £630,202 01/2018constructed in 2008 totalling 86,794 sq. ft.

ColchesterGilberd Court, Units 1-6 Severalls ParkLong leasehold mutli-let industrial estate comprising Various £521,126 12/20186 units in two terraces with a total floor area of 75,837 sq. ft.A central service road/area provides 230 car parking spaces.

CrayfordBourne Industrial ParkFreehold industrial estate of 28 warehouse and trade Various £554,197 06/2017counter units constructed in the early 1980s, totalling 55,252 sq. ft.

Croydon19 Commerce WayFreehold industrial estate of 12 modern units completed Various £1,159,076 10/2017in 2004, totalling 138,038 sq. ft.

Droitwich125 Hampton LovettFreehold detached industrial warehouse unit totalling Amazon UK Services Ltd £557,301 09/2021113,443 sq. ft.

FarehamUnits 1-7 Solent GateFreehold modern industrial estate comprising seven units Various £346,700 N/Aof steel portal frame construction, totalling 50,094 sq. ft.


30


Fareham

Solent Gate


Guildford1-4 Henley Business ParkLong Leasehold. Twelve units arranged in four blocks of Various £496,760 04/2017three terraced units. Constructed in 2006 totalling 92,141 sq. ft.

HamptonKempton GateFreehold multi-let industrial estate of sixteen units Various £625,623 10/2017totalling 86,794 sq. ft.

HayesSpringfield RoadLong Leasehold industrial estate of five units. Various £382,794 11/2018The property totals 76,643 sq. ft.

High WycombeCressex Industrial EstateFreehold distribution/warehouse industrial estate of Various £565,384 03/2022five units, totalling 138,692 sq. ft.

Leeds Unit 3, Benyon Park WayFreehold detached 1980’s twin-bay warehouse with yard, Encon Ltd £449,072 08/2018turning and car parking areas. The property totals 105,751 sq. ft.

LetchworthFourth DimensionLeasehold terrace of three industrial units completed Stapletons (Tyre Services) £417,136 N/Ain 2002, totalling 68,626 sq. ft. Charleswaters Ltd

Maidstone5 Mills RoadFreehold detached industrial/distribution unit and yard, P&H Ltd £237,777 03/2021totalling 102,572 sq. ft.

NewportUnits A & B, Reevesland Industrial EstateFreehold large warehouse facility split into two units together Various £407,175 09/2017 with separate vehicle workshop building, totalling 175,005 sq. ft.

North TynesideUnits A, B & C, Hadrian Industrial ParkFreehold, two modern industrial warehouse units Various £744,432 10/2017totalling 161,015 sq. ft.


31


Letchworth

Fourth Avenue

Guildford

Henley Business Park


RedditchArrow Valley 2Freehold detached industrial/distribution unit and Landsdon Ltd £513,000 N/Ayard, totalling 95,352 sq. ft.

RedditchUnits 58-69 & 70-90 Heming Road, Washford Industrial EstateFreehold industrial estate comprising 33 units constructed in Various £487,337 07/2017the mid 1980’s, totalling 145,453 sq. ft.

RedhillIO CentreFreehold. Modern multi-let industrial estate arranged in Various £360,306 09/2017terraces. Some trade counters. The property totals 42,105 sq. ft.

RochesterBooker Cash & Carry UnitFreehold. Single storey warehouse with ancillary Booker Ltd £712,430 N/Aaccommodation used for wholesale retail, includes 170 car parking spaces within yard. The property totals 92,381 sq. ft.

RugbyUnit E Swift ParkFreehold detached industrial unit and yard, totalling 94,017 sq. ft. Volvo Group UK Ltd £445,435 N/A

Rugby IO CentreFreehold multi-let industrial estate of seven units Various £401,558 05/2018constructed in 2003, totalling 91,120 sq. ft.

RugbyUnit C Swift PointFreehold detached industrial/distribution unit and yard, CDK (UK) Ltd £660,000 N/Atotalling 122,020 sq. ft.

SheffieldShepcote Business ParkFreehold, well-specified distribution warehouse completed 2002 DSG Retail Ltd £408,000 N/Acomprising a two bay of steel portal frame warehouse with 10% offices. The property totals 96,000 sq. ft.

Southampton The Whitbread Centre Freehold detached warehouse constructed in 1989 totalling Import Services Ltd £680,000 06/2019113,071 sq. ft.


32


Redditch

Arrow Valley 2


South NormantonUnits 1 & 2 Fulwood, 28 Common RoadFreehold. Modern Warehouse with two storey office Various £556,250 N/Aaccommodation, constructed in 2003. The property totals 81,584 sq. ft.

ThetfordBurrell Way Trading Estate, London RoadFreehold industrial estate constructed in the 1980s comprising Various £519,423 09/201715 units totalling 142,732 sq. ft.

WitneyWitney Industrial EstateFreehold mutli-let industrial/trade counter estate constructed Various £327,781 07/2018in early 1980s and refurbished in 2005. Total floor area of 46,806 sq. ft. across 11 units.

Wokingham Ashville Park, Molly Millars Lane Freehold estate of five business units arranged a four detached Various £473,256 N/Abuildings, one divided to create two units. The property totals 80,381 sq. ft.

33


Witney

Witney Industrial Estate

South Normanton

Units 1 & 2 Fulwood 28


34


Retail Warehouses


SwanseaB&Q Gorseinon RoadFreehold retail warehouse and garden centre B&Q Plc £139,000 06/2019totalling 26,262 sq. ft. with 91 car parking spaces.


BridlingtonBessingby RoadFreehold retail warehouse totalling 28,041 sq. ft. B&Q Plc £332,750 06/2017with adjoining garden centre and parking forapproximately 130 cars.

CannockWickes Unit, Litchfield RoadFreehold solus retail warehouse unit totalling 26,040 sq. ft. Wickes Building Supplies Ltd £310,000 12/2025with 124 car parking spaces.

CannockThe Chase CentreFreehold retail warehouse park totalling 27,664 sq. ft. with Various £318,551 05/2018adjoining garden centre.

CarmarthenEx Focus Unit, Stephens WayFreehold retail warehouse totalling 30,693 sq. ft. with Cemex Investments Ltd £312,850 N/Aadjoining garden centre and parking forapproximately 158 cars.

CreweVernon Way Retail Park.Freehold. Two detached retail warehouse units one of which Various £396,626 09/2018has been sold off on a long leasehold together with a cleared site and former cinema building. The site totals 5.4 acres and units totaling 57,413 sq. ft.

LincolnLincoln West Retail ParkFreehold terrace of three retail warehouse units totalling Various £371,950 02/201948,625 sq. ft. with 137 car parking spaces.

March Meadowlands Retail ParkFreehold retail warehouse park comprising a terrace of Various £308,099 03/2018four units and one stand-alone unit totalling 31,208 sq. ft.

PrestonUnits 2-8, Ribbleton LaneFreehold retail warehouses originally constructed as six units Various £101,535 09/2018and converted to provide two retail warehouses and one trade counter unit, totalling 48,245 sq. ft.

StirlingWickes Unit, Springkerse Industrial EstateFreehold standalone retail warehouse constructed in 1996. Wickes Building Supplies Ltd £406,125 N/ATotal floor area is 28,474 sq. ft. with 132 car parking spaces and service yard to the rear.

Stockton-upon-TeesWickes, Portrack LaneLong leasehold retail warehouse totalling 30,191 sq. ft., Wickes Building Supplies Ltd £320,000 12/2017with 169 car spaces.

35



Birmingham Heybarnes Retail Park Freehold purpose built terrace of three units together with a Various £777,534 09/2017newly constructed restaurant unit, totalling 35,291 sq. ft. with142 car parking spaces.

BostonWest Street Retail ParkFreehold retail park of two units together with an office Various £376,294 12/2018suite, totalling 30,589 sq. ft. with 92 car parking spaces.

BristolChannons Hill Retail ParkFreehold retail park arranged in three blocks. Various £672,600 08/2017The property totals 61,428 sq. ft. with 254 car parking spaces.

CardiffNewport RoadFreehold terrace of three retail warehouse units Various £1,003,613 07/2018totalling 55,315 sq. ft. together with 206 car parking spaces.

CarmarthenTowy Retail ParkFreehold detached retail warehouse development with Various £476,501 12/2018two units, parking and service yard, totalling 35,000 sq. ft.

ExeterHomebase, Moor Lane, Sowton Industrial EstateFreehold retail warehouse, totalling 35,949 sq. ft., Homebase Ltd £598,250 N/Awith 171 car parking spaces.

GlasgowAnniesland Retail ParkFreehold retail park comprising three adjoining units, Various £674,425 08/2019developed in 1994, totalling 37,368 sq. ft.

GloucesterEastern Avenue Retail ParkFreehold retail park of six units constructed in 2003, Various £1,014,409 06/2018totalling 65,572 sq. ft.

Retail Warehouses(continued)

Carmarthen

Towy Retail Park

36


Retail Warehouses(continued)


IpswichOrwell Retail ParkFreehold stand-alone retail warehouse unit Matalan Retail Ltd £456,134 N/Atotalling 29,469 sq. ft. with 102 car parking spaces.

LeytonB&Q Haybridge WayFreehold solus detached retail warehouse unit of steel B&Q Plc £376,700 04/2021portal frame construction built in the late 1980s,totalling 33,842 sq. ft.

Paignton215 Brixham RoadFreehold retail warehouse unit and car parking ASDA Stores Ltd £420,000 N/Aundergoing conversion to a supermarket unit,totalling 23,815 sq. ft.

SelbyThree Lakes Retail ParkFreehold retail warehouse park comprising 10 units, Various £1,402,659 04/2018totalling 104,665 sq. ft.

StockportDidsbury RoadFreehold two unit retail warehouse scheme totalling Various £505,500 07/201730,020 sq.ft with 149 car parking spaces.

TrowbridgeTrowbridge & Spitfire Retail ParksFreehold retail warehouse park of two amalgamated schemes Various £1,065,857 04/2021with nine retail units and two fast food pods totalling 126,752 sq. ft.

TruroNewquay Road Retail ParkFreehold modern purpose built retail park. Various £712,113 08/2023The property totals 72,645 sq. ft.

WhitehavenBridges Retail ParkFreehold retail warehouse park of five terraced units and Various £347,000 07/2019a separate drive through restaurant unit, totalling 43,251 sq. ft.,with 212 car parking spaces.

WorthingPages Corner Retail ParkFreehold two retail warehouses refurbished and Various £589,710 01/2020sub-divided in 1997, totalling 38,132 sq. ft. with161 car parking spaces.

YorkFoss Island Retail Park Freehold retail warehouse park of five units, Various £1,606,254 05/2018totalling 87,409 sq. ft. with 212 car parking spaces.

Trowbridge

Trowbridge & Spitfire Retail Parks

37


York

Foss Island Retail Park (page 36)

Car Showrooms

Leisure

Between £2.5 and Principal Rental Income Next Rent £5 million in Value Tenants per annum Review

SunderlandLow RoadFreehold purpose built 60 bed hotel built circa 2002 Various £257,800 04/2022together with two public houses trading at groundand first floors. The property totals 41,711 sq. ft.

WolverhamptonAir Space, Well LaneFreehold detached trampoline centre with ancillary offices Adventure Forest Ltd £310,000 08/2020totalling 51,934 sq. ft.

Between £2.5 and Principal Rental Income Next Rent £5 million in Value Tenants per annum Review

BedfordAmpthill RoadFreehold car showroom, totalling 23,843 sq. ft. Cruickshank Motors Ltd £271,536 06/2017


AylesburyThe ExchangeLong leasehold for a term of 150 years from 7/1998, Various £746,416 11/2018a town centre dominant leisure scheme built in 2000comprising a six screen cinema, a parade of four restaurants and a gym, in all totalling 64,711 sq. ft.

Coventry Skydome, Croft RoadCity centre purpose built leisure scheme completed Various £1,771,838 08/2017in 2000 extending to approximately 161,900 sq. ft.in two buildings with 779 car parking spaces.

38


Bristol Portfolio


Bristol75 Queens RoadFreehold terraced building comprising ground floor retail Various £51,096 N/Aunit with ancillary basement accommodation. Studentaccommodation to first, second and third floors.The property totals 2,619 sq. ft.

Bristol97 Gloucester RoadFreehold three storey property comprising ground floor Various £32,287 N/Acafe with self-contained maisonette on upper floors. Commercial accommodation totalling 1,178 sq. ft.

Bristol11-13 Gloucester RoadFreehold mid terrace property comprising three Various £54,846 12/2018adjoining three-storey period buildings, each with ground floor retail unit and two maisonettes above.The property totals 4,523 sq. ft.

Bristol18 Portland StreetFreehold mid-terrace property comprising ground floor Various £62,322 02/2021retail unit with ancillary storage to basement andfirst floor. Three self-contained flats above.Commercial accommodation totalling 1,925 sq. ft.

Bristol39 Park StreetFreehold mid-terrace property comprising retail unit Various £73,096 01/2020arranged on basement, ground and two upper floors. Self-contained maisonette to upper floors. Commercial accommodation totalling 2,793 sq. ft.

Bristol2 Zetland RoadFreehold two storey property comprising ground floor retail The Carphone Warehouse Ltd £21,000 N/Aunit with residential accommodation to upper floors. Upper floors sold on long leases at peppercorn rent. The property totals 1,156 sq. ft.

Bristol38 Park StreetFreehold four-storey mid-terrace property, comprising retail Various £58,185 N/Aunit on ground and lower ground floors with self-contained flat above. The property totals 2,976 sq. ft.

Bristol1 Park Street AvenueFreehold mid-terrace property arranged as bar and nightclub The Woods Trading Ltd £33,500 05/2022on basement, ground and first floors. The property totals 1,021 sq. ft.

Bristol1-3 Gloucester RoadFreehold three storey property comprising ground floor Maplin Electronics Ltd £71,400 N/Aretail unit. Upper floors comprise residential accommodation sold on long leases at peppercorn rent. Commercial accommodation totalling 5,923 sq. ft.

Bristol55 Park StreetFreehold mid-terrace three-storey property comprising retail Noman Turan £50,000 09/2019unit to ground floor with two flats above. The property totals 2,949 sq. ft.

Bristol73 Queens Road Freehold four-storey mid-terrace property comprising ground Various £64,346 N/Afloor retail unit with basement storage. Maisonette above. The property totals 2,616 sq. ft.

39



Bristol37-39 Baldwin StreetFreehold five-storey property comprising two ground floor Various £109,037 11/2020retail kiosks. Nine residential units on upper floors. The property totals 4,910 sq. ft.

Bristol61-63 Queens RoadFreehold mid-terrace six-storey property comprising ground Various £109,653 07/2017floor retail unit and residential accommodation on upper floors. The property totals 6,965 sq. ft.

Bristol6-10 St Nicholas StreetFreehold terraced building comprising retail space on Various £98,950 08/2019ground floor with basement storage. Part of ground floor and basement also used as nightclub premises. Residential accommodation to first, second and third floors. Upper floor of No.12 held long leasehold. The property totals 9,555 sq. ft.

Bristol76-78 Whiteladies RoadTwo-adjoining five-storey buildings held freehold. Ground Various £127,014 03/2020floor retail unit with two blocks of residential accommodation above. Commercial accommodation totalling 4,629 sq. ft.

Bristol786 Fishponds RoadFreehold leisure property, totalling 4,187 sq. ft. Ground and Stonegate Pub Company Ltd £96,196 03/2019first floors comprise bar and ancillary accommodation. Flats on upper floors sold on long leases at peppercorn rent.

Bristol80-82 Whiteladies RoadFreehold five-storey mid-terrace property comprising Various £105,348 07/2021two-adjoining buildings. Ground floor retail unit with ancillarybasement accommodation. Residential accommodation above. Commercial accommodation totalling 2,966 sq. ft.

Bristol2-4 Gloucester RoadFreehold two-storey property comprising a ground floor Various £102,022 08/2020supermarket unit and a restaurant unit with ancillary first floor accommodation. The property totals 5,976 sq. ft.

Bristol Portfolio(continued)

40



Bristol127 Westbury RoadFreehold retail warehouse showroom units, arranged Majestic Wine Warehouses Ltd £70,000 05/2018over three floors, totalling 2,552 sq. ft.

Bristol14-24a Gloucester RoadFreehold parade of seven ground floor retail units, Various £125,000 07/2018totalling 3,972 sq. ft.

Bristol56-60 Whiteladies RoadTwo adjoining five-storey buildings held freehold. Various £130,176 12/2017Comprises ground floor retail unit with residential accommodation above. Commercial accommodation totalling 2,639 sq. ft.

Bristol35-37 Park StreetFreehold mid-terrace property comprising retail unit to Various £131,692 N/Aground floor and basement. Residential accommodation to first and second floor. The property totals 8,144 sq. ft.

Bristol

127 Westbury Road

Bristol Portfolio(continued)

41


Under the terms of the Trust Deed, Threadneedle Investments

(Channel Islands) Limited (the “Manager”) is required to prepare

financial statements for each annual accounting period, which

give a true and fair view of the financial position of the Trust and

income and expenditure due to Unitholders for the year.

In preparing those financial statements, the Manager is required

to select suitable accounting policies and apply them consistently,

follow United Kingdom Generally Accepted Accounting Practice

(United Kingdom Accounting Standards, comprising FRS 102 "The

Financial Reporting Standard applicable in the UK and Republic

of Ireland", and applicable law) and keep proper accounting

records which enable them to demonstrate that the financial

statements as prepared comply with the aforementioned

requirements.

The Manager is also required to prepare the financial statements

on the going concern basis unless it is inappropriate to presume

that the Trust will continue its business.

The Directors of the Manager confirm that they have complied

with the above requirements throughout the year and when

preparing the financial statements.

The Manager is responsible for the management and

administration of the underlying property of the Trust in

accordance with the Trust Deed. As far as the Manager is aware,

there is no relevant audit information of which the Trust’s auditors

are unaware. The Manager has taken appropriate steps to ensure

it is aware of such relevant information and the Trust’s auditors

are aware of such information.

RJS Prosser BSc FCA

Director

Threadneedle Investments (Channel Islands) Limited

14 June 2017

BNP Paribas Securities Services Trust Company Limited and BNP

Paribas Securities Services Trust Company (Jersey) Limited (the

“Trustees”) have a duty to take in to custody and hold the

underlying assets of the Trust for the Unitholders and to ensure

that in all material respects the Manager has managed the Trust

in accordance with the provisions of the Trust Deed, including

the preparation of the financial statements. The Trustees may

enquire into the conduct of the Manager in the management of

the Trust.

Report of the Trustees to the Unitholders of the Trust

The Trustees have enquired in to the conduct of the Directors of

the Manager of the Trust during the year to 31 March 2017.

In the Trustees’ opinion, the Directors of the Manager have

managed the Trust in accordance with the limitations imposed

on the investment and borrowing powers of the Trust by the Trust

Deed, the current Prospectus of the Trust and all Orders for the

time being in force under Article 10 of the Collective Investment

Funds (Jersey) Law, 1988.

BNP Paribas Securities Services Trust Company Limited &

BNP Paribas Securities Services Trust Company (Jersey) Limited

14 June 2017

Statement of the Manager’s Responsibilities in Respectof the Annual Report and Financial Statements of the Trust

Statement of the Trustees’ Responsibilities in Respect ofthe Trust

42


Note £000s

Total income (including interest income) 71,208Expenditure (recoverable by deduction from Unitholders) Other expenditure (8,919)Tax withheld on distributions (1,461)

Net income 60,828

Appropriated as follows:

Distributed 20 July 2016 16 15,225Distributed 20 October 2016 16 15,550Distributed 20 January 2017 16 14,796Distributed 20 April 2017 17 15,217To be distributed in July 2017 17 40

Total distributions 60,828

By order of the Manager

RJS Prosser BSc FCA


14 June 2017

Manager’s Report

The Manager presents the Financial Statements of the Trust for the year ended 31 March 2017. During the year, 295,309.707 units were

issued and 75,343.022 units were redeemed. There were 4,817,183.236 units in issue at 31 March 2017. The net effect of the above

transactions was an increase in the year in the number of units in issue by 219,966.685 units. The net asset value of the Trust as at

31 March 2017 was £1,360,629,047 (2016: £1,312,112,297). The gross income distributable, after expenses, amounted to £60,828,184

(2016: £62,521,105) equivalent to an average of £13.38 (2016: £14.30) per unit.

Differing levels of management charges are applicable dependent upon the type of Unitholder. The Trust utilises different unit classes to

denominate the appropriate management charge and therefore the distribution rates applicable (see note 9).These unit classes do not

affect the rights of the Unitholder or the capital value of the underlying investment.

A summary income and expenditure and distribution statement for the year ended 31 March 2017 is set out below:

43


Report on the financial statementsOur opinion

In our opinion, Threadneedle Property Unit Trust’s (the "Trust's")financial statements (the “financial statements”):

n give a true and fair view of the state of the Trust’s affairs as at31 March 2017 and of its loss and cash flows for the year then ended;

n have been properly prepared in accordance with UnitedKingdom Accounting Standards comprising FRS 102 “TheFinancial Reporting Standard applicable in the UK andRepublic of Ireland”; and

n have been prepared in accordance with the requirements ofthe Trust Deed.

What we have audited

The financial statements, included within the Annual Report andFinancial Statements (the “Annual Report”) comprise:

n the Balance Sheet as at 31 March 2017;

n the Statement of Comprehensive Income for the year ended 31 March 2017;

n the Statement of Changes in Net Assets Attributable toUnitholders for the year ended 31 March 2017;

n the Statement of Cash Flows for the year ended 31 March 2017; and

n the notes to the financial statements, which include asummary of the significant accounting policies and otherexplanatory information.

The financial reporting framework that has been applied in thepreparation of the financial statements is United KingdomAccounting Standards, comprising FRS 102 “The FinancialReporting Standard applicable in the UK and Republic of Ireland”and applicable law.

In applying the financial reporting framework, the Manager andTrustees have made a number of subjective judgements, forexample in respect of significant accounting estimates. In makingsuch estimates, they have made assumptions and consideredfuture events.

Opinion on other matterIn our opinion, the information given in the Manager’s Report,the Statement of the Manager’s and Trustees’ Responsibilities forthe financial year for which the financial statements are preparedis consistent with the financial statements.

Responsibilities for the financial statementsand the auditOur responsibilities and those of the Manager and the Trustees

As explained more fully in the Statement of Manager’s and Trustees’Responsibilities set out on page 41, the Manager and Trustees areresponsible for the preparation of the financial statements and forbeing satisfied that they give a true and fair view.

Our responsibility is to audit and express an opinion on thefinancial statements in accordance with applicable law and

International Standards on Auditing (UK and Ireland) (“ISAs (UK& Ireland)”). Those standards require us to comply with theAuditing Practices Board’s Ethical Standards for Auditors.

This report, including the opinion, has been prepared for andonly for the Trust’s Unitholders as a body and for no otherpurpose. We do not, in giving this opinion, accept or assumeresponsibility for any other purpose or to any other person towhom this report is shown or into whose hands it may comesave where expressly agreed by our prior consent in writing.

What an audit of financial statements involves

We conducted our audit in accordance ISAs (UK & Ireland). Anaudit involves obtaining evidence about the amounts anddisclosures in the financial statements sufficient to givereasonable assurance that the financial statements are free frommaterial misstatement, whether caused by fraud or error. Thisincludes an assessment of:

n whether the accounting policies are appropriate to the Trust’scircumstances and have been consistently applied andadequately disclosed;

n the reasonableness of significant accounting estimates madeby the Manager and Trustees; and

n the overall presentation of the financial statements.

We primarily focus our work in these areas by assessing theManager’s and Trustees’ judgements against available evidence,forming our own judgements, and evaluating the disclosures inthe financial statements.

We test and examine information, using sampling and otherauditing techniques, to the extent we consider necessary toprovide a reasonable basis for us to draw conclusions. We obtainaudit evidence through testing the effectiveness of controls,substantive procedures or a combination of both.

In addition, we read all the financial and non-financialinformation in the Annual Report to identify materialinconsistencies with the audited financial statements and toidentify any information that is apparently materially incorrectbased on, or materially inconsistent with, the knowledgeacquired by us in the course of performing the audit. If webecome aware of any apparent material misstatements orinconsistencies we consider the implications for our report.

PricewaterhouseCoopers CI LLP

Chartered Accountants

37 Esplanade

St Helier

Jersey,

JE1 4XA

Channel Islands

14 June 2017

Independent Auditors’ Report to the Unitholders of Threadneedle Property Unit Trust

44


Statement of Comprehensive Income for the Year Ended 31 March 2017

2017 2016Note £000s £000s

Property Income 6 88,271 86,085Net expense arising from investment in Threadneedle Opportunities Property Unit Trust – (20)Net income arising from investment in Low Carbon Workplace Trust 311 180

Gross income 88,582 86,245Property expenses 7 (17,542) (13,976)

Total income 71,040 72,269

Trust Level expenses:Management fees 9 (7,946) (7,678)Trustees’ fees 9 (276) (271)General expenses (271) (144)Audit fees (41) (35)Valuation fees (383) (405)

Total expenses (8,917) (8,533)

Interest income 11 168 228

Total interest income 168 228

Net (loss)/gain on investment properties 8a (18,214) 69,776

Net result/(loss) on Investment in Threadneedle Opportunities Property Unit Trust 8b – (49)

Net gain on investment in Threadneedle Low Carbon Workplace Trust 8c 728 2,080

Total comprehensive income before finance costs and taxation 44,805 135,771Finance costs – income distributions paid 16 (45,571) (46,021)Finance costs – income distributions payable 17 (15,257) (16,500)Tax withheld on distributions 5 (1,461) (1,443)

(Decrease)/Increase in net assets attributable to Unitholders (17,484) 71,807

Statement of Change in Net Assets Attributable to Unitholdersfor the Year Ended 31 March 2017

2017 2016Note £000s £000s

Opening net assets attributable to Unitholders at 1 April 2016 comprising 4,597,216.551 units (2016: 4,291,687.336 units) 1,312,112 1,150,972Issue of 295,309.707 units (2016: 318,922.294 units) 86,967 93,296Redemption of 75,343.022 units (2016: 13,393.079 units) (20,966) (3,963)

1,378,113 1,240,305(Decrease)/Increase in net assets attributable to Unitholders (17,484) 71,807

Closing net assets attributable to Unitholders at 31 March 2017 comprising 4,817,183.236 units (2016: 4,597,216.551 units) 18 1,360,629 1,312,112All amounts above are in respect of continuing operations.The notes and accounting policies on pages 47 to 55 form part of these financial statements.

45


Balance Sheet as at 31 March 2017

2017 2016Note £000s £000s

Non-current assetsInvestment Properties 12Freehold 1,039,554 1,017,910Leasehold 191,430 173,325Mixed 10,916 10,840

1,241,900 1,202,075

Investment in Threadneedle Low Carbon Workplace Trust 8c 25,815 25,087Lease incentives receivable in more than one year 9,322 6,368

1,277,037 1,233,530

Current assetsDebtors 13 35,869 7,783Lease incentives receivable within one year 2,363 2,167Cash at bank 90,177 111,843

128,409 121,793

Creditors: amounts falling due within one yearIncome tax payable (372) (376)Creditors 14 (29,188) (26,336)Finance costs: amounts due to Unitholders 17 (15,257) (16,499)

(44,817) (43,211)

Net assets attributable to Unitholders 1,360,629 1,312,112The notes and accounting policies on pages 47 to 55 form part of these financial statements.

The financial statements were approved by the Manager on 14 June 2017 and signed on its behalf by:

RJS Prosser BSc FCA

Director


14 June 2017

46


Statement of Cash Flows for the Year Ended 31 March 2017

2017 2016Note £000s £000s £000s £000s

Net cash flow from operating activities 21 63,333 64,441

Net cash generated from operating activities 63,333 64,441

Cash flow from investing activitiesPurchases of investment property 12 (70,101) (88,096)Capital expenditure 12 (5,514) (11,135) Proceeds from sale of properties 8a 17,576 31,370 Capital return from Threadneedle Opportunities Property Trust 8b – 4,314Investment in Threadneedle Low CarbonWorkplace Trust 8c – (14,000) Interest received 11 168 228

Net cash used in investing activities (57,871) (77,319)

Cash flow from financing activitiesIncome distributions paid to Unitholders (62,071) (60,281)Taxation paid (1,464) (1,366)Issue of units 57,367 93,296Redemption of units (20,960) (3,951)

Net cash (used)/raised from financing activities (27,128) 27,698

Net (decrease)/increase in cash and cash equivalents (21,666) 14,820

Cash and cash equivalents at the beginning of the year 111,843 97,023

Cash and cash equivalents at the end of the year 90,177 111,843Cash and cash equivalents consist of:Cash at bank 90,177 111,843

Cash and cash equivalents 90,177 111,843The notes and accounting policies on pages 47 to 55 form part of these financial statements.

47


Notes to the Financial Statements for the Year Ended 31 March 2017

1 General Information

The Trust is an unclassified open-ended Unit Trust originally

established under English law by a Trust Deed dated 15 June 1967

under the name Molins Property Unit Trust. The Trust subsequently

changed its name, first to Sackville Property Unit Trust and then to

Threadneedle Property Unit Trust, and is now governed by a

fourth amended and restated trust instrument under Jersey law

dated 4 December 2014 (as may be amended from time to time)

made between the Manager and the Trustees (the “Trust

Instrument”). The nature of the rights represented by Units in the

Trust is that of a beneficial interest under a trust. The Unitholders

have a right to the income of the Trust as and when it arises.

2 Statement of Compliance

The financial statements of Threadneedle Property Unit Trust

have been prepared in accordance with United Kingdom

Accounting Standards, including Financial Reporting

Standard 102, “The Financial Reporting Standard applicable in

the United Kingdom and the Republic of Ireland” (“FRS 102”) and

in accordance with the Trust Deed.

3 Summary of Significant Accounting Policies

The principle accounting policies applied in the preparation of

the financial statements are set out below. The Trust has adopted

FRS 102 in these financial statements. The principle accounting

policies which have been applied consistently throughout the

year are set out below.

Basis of preparation

These financial statements have been prepared on a going

concern basis in accordance with United Kingdom Accounting

Standards, including FRS 102, and the Trust Deed in accordance

with the historical cost convention as modified by the revaluation

of investment properties at fair value through profit or loss after

the deduction of unamortised lease incentives at the year end,

and by the valuation of financial assets and liabilities at fair value

through profit and loss, and as recommended by the Code of

Practice established by the Association of Real Estate Funds. The

form and content of the Annual Report and Financial Statements

follow, wherever possible, the form and content set out in the

Statement of Recommended Practice for Authorised Funds.

The preparation of financial statements in conformity with

FRS 102 requires the use of certain critical accounting estimates.

It also requires management to exercise its judgement in the

process of applying the company’s accounting policies. The areas

involving a higher degree of judgement or complexity, or areas

where assumptions and estimates are significant to the financial

statements are disclosed in Note 4.

Revenue recognition

Property income consists principally of rental income receivable

from tenants in the year and is recognised on an accruals basis.

Rental income received in advance is deferred and recognised

in the period to which it relates.

In accordance with the FRS 102, rental income from properties

which have been subject to a rent free period or inducement is

accounted for on a straight line basis over the period of the lease.

The valuation of investment properties is reduced by all

unamortised lease incentives.

The Trust has taken advantage of the exemption in respect of

lease incentives on leases in existence on the date of transition

to FRS 102 (1 April 2014) and continue to recognise such lease

incentives in the Statement of Comprehensive Income over the

shorter of the lease period or the period to when the rental was

set to a fair market rent.

Cost of sales

Expenditure is accounted for on an accruals basis.

Service charge revenue and service charge expenditure

attributable to tenants are accounted for within property income

and property expenses respectively and are recognised on an

accruals basis. Service charge void costs attributable to the Trust

are included in property expenses.

Administrative Expenses

Administrative expenses consist of costs associated with general

administration of the Trust and are recognised on an accruals basis.

Interest income

Interest income is recognised on an accruals basis.

Taxation

The Trustees are not resident in the UK for capital gains tax

purposes. The Trust is outside the scope of the UK capital gains tax

regime. The income of the Trust belongs directly to Unitholders

and is paid gross to Unitholders who are resident in the UK and

other persons who have received authority from HM Revenue &

Customs to receive rent gross. Tax is deducted at source (at the

basic rate, currently 20% (2016: 20%) from rental profit paid to

Unitholders who are not resident in the UK and who have not

received authority to receive rent gross. UK interest is paid net

of UK income tax at the lower rate unless it is received gross of

tax in which case it is paid gross to the Unitholders.

Exempt Unitholders are entitled to reclaim any income tax

deducted at source. Other Unitholders may reclaim income tax

deducted at source if and to the extent that it exceeds their UK tax

liability on income.

The Board of HM Revenue & Customs has certified the Trust as a

distributing fund for the purposes of Chapter V Part XVII of the

Income and Corporation Taxes Act 1988 in respect of all applicable

accounting periods up to 31 March 2010.The Manager does not

intend to seek Reporting Fund status for the Trust in respect of the

accounting period commencing on 1 April 2010 and any

subsequent accounting periods on the basis that the Trust is a

transparent fund within the meaning of Regulation 11 of Part One

of the Offshore Funds (Tax) Regulation 2009, the Trust will not

hold interests in non-reporting funds which amount in total to

more than 5% by value of its assets and the Trust makes sufficient

information available to Unitholders to enable them to meet their

UK tax obligations in respect of their units.

48


Notes to the Financial Statements for the Year Ended 31 March 2017(continued)

Investment Property

Property that is held for long-term rental income or for capital

appreciation or both, and that is not occupied by the Trust, is

classified as investment property and accounted for in

accordance with FRS 102 Section 16.

Investment property is measured initially at cost, including

related transaction costs, on the date of acquisition or the date of

unconditional exchange, if earlier. After initial recognition,

investment property is carried at fair value, after the deduction of

unamortised lease incentives. Revaluation gains and losses are

recognised in the Statement of Comprehensive Income.

Valuations are performed by CBRE Limited and Jones Lang

LaSalle Limited (“JLL Limited”) who are professional, third party,

independent Chartered Surveyors, at the year end in accordance

with RICS Appraisal and Valuation Standards. Both valuers hold

recognised and relevant professional qualifications and have

recent experience in the location and category of the investment

property being valued. Fair value is based on active market

information, adjusted, if necessary, for any difference in the

nature, location or condition of the specific asset. If this

information is not available, alternative valuation methods are

used, such as recent prices of similar properties in less active

markets, with adjustments to reflect any changes in economic

conditions since the date of the transactions that occurred at

those prices, or discounted cash flow projections.

Disposals of investment property are recognised on legal

completion of contracts.

Investments

The interest of the Trust in its investment in Threadneedle Low

Carbon Workplace Trust (“LCWT”) is stated in the balance sheet

at fair value. Initial recognition is measured at cost, based upon

the cost of the original investment in LCWT on the date of

acquisition. Any subsequent investment or divestment is

measured at cost. After initial recognition, the Trust’s investment

in LCWT is carried at fair value with revaluation gains and losses

recognised in the Statement of Comprehensive Income.

Cash and cash equivalents

Cash and cash equivalents includes cash in hand, deposits held

at call with banks, other short-term highly liquid investments

with original maturities of three months or less. Bank overdrafts

are shown within current liabilities.

Distributions to Unitholders

With respect to distributions, all income is distributed to

Unitholders after expenses and payment of tax, where

applicable. Distributions are classified as finance costs and are

accounted for on an accruals basis.

Related party transactions

The Trust discloses transactions with related parties if one party has

the ability to control the other party or exercise significant influence

over the other party in making financial or operational decisions.

4 Critical Accounting Judgements and EstimationUncertainty

Critical accounting estimates and assumptions

Management makes estimates and assumptions concerning the

future based on historical experience and adjusted for current

market conditions and other factors. The estimates, assumptions

and management judgements that have a significant risk of

causing a material adjustment to the carrying amounts of assets

and liabilities are outlined below.

Investment Property

The principal assumptions underlying the estimation of fair value

of Investment Properties are those related to the receipt of

contractual rental, expected future market rentals, void periods

lease incentives, maintenance requirements and appropriate

yields/discount rates. These valuations are regularly compared

to actual market yield data and actual transactions by the Trust

and those reported by the market. The expected future market

rentals are determined on the basis of current market rentals for

similar properties in the same location and condition.

Investments

The principal assumptions underlying the estimation of fair value

of the Trust’s investment in LCWT are those related to the fair

value of investment properties held by LCWT. In LCWT,

valuations are performed by JLL Limited who are professional,

third party, independent Chartered Surveyors, at the year end in

accordance with RICS Appraisal and Valuation Standards.

Assumptions include the receipt of contractual rentals, expected

future market rentals, void periods, lease incentives,

maintenance requirements and appropriate yields/discount rates

and for development properties, an allowance for future

development expenditure and development management fees.

These valuations are regularly compared to actual market yield

data and those reported by the market. The expected future

market rentals are determined on the basis of current market

rentals for similar properties in the same location and condition.

5 Tax withheld on distributions

For the year to 31 March 2017, the Trustees withheld income tax

payments to Unitholders amounting to £1,460,812 (2016:

£1,443,181).

49


6 Property Income

2017 2016£000s £000s

Rents receivable 78,993 77,851Service charge income 9,278 8,234

88,271 86,085

The future aggregate minimum rentals receivable under non-cancellable operating leases are as follows:

2017 2016£000s £000s

No later than 1 year 77,541 70,626Later than 1 year and no later than 5 years 322,481 192,126Later than 5 years 21,788 126,091

421,810 388,843

Contingent rents recognised as income were nil in the year (2016: nil).

The Trust leases out its investment property under operating leases to a variety of tenants and over varying periods.

7 Property Expenses

2017 2016£000s £000s

Service charge expense 9,278 8,234Ground rent payable 381 250Other property expenses 7,883 5,492

17,542 13,976

8a Net (Loss)/Gain on Investment Properties

2017 2016£000s £000s

Proceeds from sales of investment properties 17,576 31,859Original cost of investment properties sold (11,728) (14,311)

Historic cost gain on investment properties sold during the year 5,848 17,548Net gain thereon already recognised in prior periods (3,872) (5,947)

Overall gain realised on investment properties during the year 1,976 11,601Net unrealised (loss)/gain (17,041) 59,136Adjustment for value of lease incentives (3,149) (961)

Net (loss)/gain on investment properties (18,214) 69,776

8b Net Result/(Loss) on Investment in Threadneedle Opportunities Property Unit Trust

2017 2016£000s £000s

At valuation 1 April – 4,363Return of capital – (4,314)Movement in valuation – (49)

At 31 March – –

Threadneedle Opportunities Property Unit Trust terminated on 19th January 2016 with the Trust receiving its final distribution inNovember 2015.

8c Net Gain on Investment in Threadneedle Low Carbon Workplace Trust

2017 2016£000s £000s

At valuation 1 April 25,087 9,007Additions at cost – 14,000Movement in valuation 728 2,080

At 31 March 25,815 25,087


50


9 Management and Trustees Fees

Threadneedle Investments (Channel Islands) Limited together

with BNP Paribas Securities Services Trust Company (Jersey)

Limited and BNP Paribas Securities Services Trust Company

Limited are regarded as the controlling parties by virtue of acting

in concert in respect of the operations of the Trust.

Amounts paid to or received from the controlling parties are

disclosed in the financial statements and detailed further within

this note.

Management Fees

For the year ended 31 March 2017, a total management fee of

£7,945,819 (2016: £7,677,968) including irrecoverable VAT of

£19,987 (2016: £29,091) was charged to the Trust. The increase in

the total management fee charged to expenses was the result of

an increase in the value of gross assets under management

during the year.

The Trust utilises differing levels of management charges. For

Unitholders categorised as charities, UK pension funds or other

UK tax exempt holders (Class A units), the fee is 0.68% per

annum on gross assets of the Trust up to £200 million. Upon the

gross assets rising above £200 million, the management charge

(in respect of the increment) reduces to 0.60% per annum. An

additional fee of 0.5% per annum on gross assets of the Trust is

added to UK tax exempt holders where trail commission is

charged (Class D units), i.e. 1.18% on gross assets up to

£200 million and 1.10% thereafter.

For Unitholders in all other categories, the charges will be

notified to applicants as they subscribe (during the year to

31 March 2017 the following fees applied: 0.75% without trail

commission for Unit Class B and 1.25% with trail commission for

Unit Class C).

Unit Classes E, F and G are not currently available to new

investors but they are subject to different management charges.

The Manager is responsible for settling all marketing costs

incurred in promoting the Trust and for any managing agents

fees other than those payable by tenants in respect of service

charges. Insurance commission of £270,142 (2016: £243,324) is

retained by the Trust. The Manager is entitled to retain all

management fees payable by tenants under service charges and

landlords licence fees for alterations, assignments and

sublettings.

For the year to 31 March 2017, the total management fees

including irrecoverable VAT for each unit class are detailed in the

table below:

Unit Class Total Management Fee in the Year £

Class A 6,589,900Class B 929,968Class C 4,109Class D 3,779Class E –Class F 240,473Class G 157,603Irrecoverable VAT 19,987

7,945,819

The amount due to the Manager at 31 March 2017 was

£1,678,212 (2016: £2,020,000).

For the year ended 31 March 2017, the Registrar charged a total

fee of £7,500 (2016: £7,500) payable quarterly. The amount due to

the Registrar at 31 March 2017 was £1,875 (2016: £1,875).

Trustees’ Fees

For the year ended 31 March 2017, the Trustees charged a total

fee of £275,623 (2016: £271,049). The amount due to the Trustees

at 31 March 2017 was £22,690 (2016: £111,736).

The Trustees are entitled to receive remuneration on such basis

as shall, from time to time, be agreed between the Manager and

the Trustees. The fees of the Trustees are calculated at 0.039%

per annum on the Trust’s net assets up to £50 million; 0.03%

per annum between £50 million and £250 million; 0.025% per

annum between £250 million and £750 million; 0.0125% between

£750 million and £1,000 million and 0.011% in excess of

£1,000 million, subject to a minimum annual fee of £50,000.

10 Employees and Directors

Employees

The number of persons working for the Trust during the year was

nil (2016: nil).

Directors

The number of directors working for the Trust during the year

was nil (2016: nil).

11 Interest Income

2017 2016£000s £000s

Bank interest received 168 228

168 228


51


12 Investment PropertiesFreehold Leasehold Mixed Total

Cost £000s £000s £000s £000s

At 1 April 2016 938,407 160,138 14,019 1,112,564Additions 60,274 14,429 912 75,615Disposals (11,728) – – (11,728)

At 31 March 2017 986,953 174,567 14,931 1,176,451

Movement in valuationAt 1 April 2016 79,503 13,187 (3,179) 89,511Unrealised (loss)/gain during the year (20,143) 3,779 (677) (17,041) Adjustment for lease incentives (2,887) (103) (159) (3,149)Amount realised in respect of sold properties (3,872) – – (3,872)

At 31 March 2017 52,601 16,863 (4,015) 65,449

Investment properties at 31 March 2017 1,039,554 191,430 10,916 1,241,900

Valuation by CBRE Limited and JLL Limited, Chartered Surveyors at fair value at 31 March 2017 1,050,350 192,155 11,080 1,253,585

The valuation at 31 March 2017 is calculated after deducting the value of lease incentives receivable amounting to £11,684,508

(2016: £8,535,326). The value of lease incentives receivable is shown in the Balance Sheet and consists of non-current assets of

£9,321,075 (2016: £6,368,336) and current assets of £2,363,433 (2016: £2,166,990).

13 Debtors2017 2016£000s £000s

Tenant deposits received 3,312 3,947Trade debtors 1,893 2,433Other debtors 1,064 1,403Unit subscription money outstanding 29,600 –

35,869 7,783

Trade debtors primarily relate to rent and service charges due as at 31 March 2016.

14 Creditors2017 2016£000s £000s

Deferred income 14,803 14,080VAT payable 1,882 1,154Trade creditors 6,185 4,884Management fee payable 1,678 2,020Other creditors 1,288 216Unit redemptions money owed 40 35Tenant deposits payable 3,312 3,947

29,188 26,336

15 Financial Instruments

In pursuing its investment objectives, the Trust creates its own financial instruments and invests in a number of financial instruments.These comprise:

– Instruments of the Trust:

– Units

– Instruments invested in by the Trust:

– Cash, other liquid resources, derivative financialinstruments and short-term debtors and creditors thatarise from its operations

– Jersey Property Unit Trusts

The Trust has not used derivatives or interest bearinginstruments during the financial year.

The main risks arising from the Trust’s own financial instrumentsand instruments in which it invests are market risk, price risk,cash flow risk, credit risk, interest rate risk and liquidity risk.

Market RiskMarket risk is the risk that the fair value or future cash flows of afinancial instrument will fluctuate because of changes in marketprices. The Trust’s market risks arise from open positions ininterest bearing assets, to the extent that these are exposed togeneral and specific market movements. Management sets limitson the exposure to interest rate risk, that may be accepted, whichare monitored on a monthly basis. However, the use of thisapproach does not prevent losses outside of these limits in theevent of more significant market movements.


52


Sensitivities to market risks included below are based on change

in one factor while holding all other factors constant. In practice,

this is unlikely to occur and changes in some of the factors may

be correlated.

Price RiskPrice risk is the risk that the Trust’s financial position andperformance will be affected by a change of market prices.

The Trust’s performance is determined by:

i) The eventual selling price of the investment properties held.

As a consequence, it participates in the deficit when property

values fall;

ii) The rental income obtainable from the directly held properties

during the period they are held. The risk arises when there are

adverse movements in the property rental market.

In order to mitigate the risk, the Trust had regard to the market

price risk associated with particular industry and geographical

sectors in formulation of its investment strategy.

Cash Flow Risk

Cash flow risk is the risk stemming from the lack of marketability

of an investment.

The Trust’s liquidity can be impacted by the following:

i) The Trust’s assets, comprising mainly of its direct investment

in property, may not be readily saleable;

ii) Decline in the rental market can lead to uncertainty of income

received from the property assets held by the Trust.

The Manager actively monitors its liquidity and cash flow

position to ensure it has sufficient finance in order to fund its

activities.

Credit Risk

Credit risk is the risk that one party to a financial instrument will

cause a financial loss for the other party by failing to discharge

an obligation. Credit risk arises from cash and cash equivalents

held at banks and trade receivables, including rental receivables

from lessees and derivatives.

Such risks are subject to a quarterly or more frequent review. In

order to mitigate this risk, the Manager performs credit checks on

potential customers before lease contracts are undertaken. Any

overdue debts are chased on a regular basis.

Cash balances by the Trust are agreed only with financial

institutions with a Moody’s credit rating of Baa3 or better. The

Trust limits the amount of credit exposure to any financial

institution.

As at 31 March 2017 The Trust held Money Market Deposits with

the following financial institutions:

Entity Balance Moody’s Rating

BNP Paribas S.A. Jersey Branch 24,500,000.00 A1

Lloyds Bank plc, Jersey 31,500,000.00 Baa1

56,000,000.00

Revenues are derived from a large number of tenants and no

single tenant or group under common control contributes more

than 3.1% (2016: 3.1%) of the Trust’s revenues.

As at 31 March 2017, £2,205,725 (2016: £2,660,819) trade

receivable consisted of £326,805 (2016: £266,271) bad debt

provision. All amounts are over 180 days old and impaired.

Interest Rate Risk

Interest rate risk arises due to changes in interest rates. The Trust

holds no interest bearing instruments and no long-term deposits

at the year end and is therefore not subject to significant interest

rate risk.

Fair Value Estimation

At 31 March 2016 and 31 March 2017, the only financial

instrument that required fair value estimation was the Trust’s

investment in LCWT.

Liquidity Risk

The amounts disclosed in the table below are the contractual

undiscounted cash flows. Undiscounted cash flows in respect of

balances due within 12 months generally equal their carrying

amounts in the statement of financial position, as the impact of

discounting is not significant.


53


The maturity analysis of financial instruments as at 31 March 2017 is as follows:

Demand Fromwithin 12 months From 2 to Later than

12 months to 2 years 5 years 5 years Total£000s £000s £000s £000s £000s

AssetsInvestments in Trusts 9,293 – 16,523 – 25,816Cash and cash equivalents 119,776 – – – 119,776Trade debtors 1,893 – – – 1,893Other debtors 4,376 – – – 4,376

LiabilitiesDeferred income 14,803 – – – 14,803Trade creditors 6,185 – – – 6,185Management fee payable 1,678 – – – 1,678Other creditors 6,482 – – – 6,482Amounts due to Unitholders 15,297 – – – 15,297

The maturity analysis of financial instruments as at 31 March 2016 is as follows:

Demand Fromwithin 12 months From 2 to Later than

12 months to 2 years 5 years 5 years Total£000s £000s £000s £000s £000s

AssetsInvestments in Trusts – – 25,087 – 25,087Cash and cash equivalents 111,843 – – – 111,843Trade debtors 2,433 – – – 2,433Other debtors 5,350 – – – 5,350

LiabilitiesDeferred income 14,080 – – – 14,080Trade creditors 4,884 – – – 4,884Management fee payable 2,020 – – – 2,020Other creditors 5,352 – – – 5,352Amounts due to Unitholders 16,536 – – – 16,536


16 Finance Costs – Income Distributions Paid

The Trust’s income belongs to Unitholders and income is allocated

monthly up to, but not including the Pricing Day (usually the last

business day in the month). All Unitholders subscribing to the Trust

on a Pricing Day receive income accruing with effect from that day.

Distributions of income to Unitholders are paid one quarter in

arrears, as soon as is practical following the last days of March,

June, September and December. Under the terms of the Trust Deed,

Unitholders bear certain expenses (including the management

charge) and these are deducted from distributions of income.

The final Pricing Day within the previous year was 31 March 2016.

Income accruing for 31 March 2016 was allocated to all Unitholders

who held units on that day. This income was allocated to

Unitholders as part of the monthly allocation in April 2016.

The distribution of this income was made in July 2016. Accordingly,

this income relating to the previous year has been removed from

the reported quarterly distribution in July 2016.

The final Pricing Day within the year ended 31 March 2017 was

31March 2017. Income accruing for 31 March 2017 was allocated to

Unitholders who held units on 31 March 2017. This income was

allocated to Unitholders as part of the monthly allocation in

April 2017. The distribution of this income will be made in July 2017.

54


During the year ending 31 March 2017, three income distributions, relating to net income generated during the year, were paid to

Unitholders.

Total£000s

Distributed 20 July 2016 15,225Distributed 20 October 2016 15,550Distributed 20 January 2017 14,796

Total distributions 45,571

17 Finance Costs – Income Distributions Payable

As stated in Note 16, the Trust’s income belongs to Unitholders and Distributions of income are made one quarter in arrears, being paid

as soon as is practical following the last days of March, June, September and December.

The following table gives a breakdown of distributions payable as at the end of the two years:

Year end Period to which distributions Pay date Totalrelate £000s

31 March 2017 31 December 2016 to 30 March 2017 20 April 2017 15,21731 March 2017 31 March 2017 to 31 March 2017 (one day) 20 July 2017 40

15,257

31 March 2016 31 December 2015 to 30 March 2016 21 April 2016 16,36531 March 2016 31 March 2016 to 31 March 2016 (one day) 20 July 2016 134

16,499

18 Units in Issue

As at 31 March 2017, there were a total of 4,817,183.236 units in issue. These comprised: 4,020,514.005 Class A units, 417,726.003 Class B

units, 369.624 Class C units, 1,121.694 Class D units, nil Class E units, 284,514.632 Class F units, 92,937.278 Class G units.

Unit Class Number of Units Number of Units Number of Units Number of Units Number of Unitsin issue as at issued during redeemed transferred in issue as at31 March 2016 the year during the year during the year 31 March 2017

Class A 3,723,638.811 273,638.475 (61,153.792) 84,390.511 4,020,514.005Class B 492,426.991 19,734.734 (14,189.231) (80,246.491) 417,726.003Class C 2,269.090 3.534 – (1,903.000) 369.624Class D 1,467.394 30.728 – (376.428) 1,121.694Class E – – – – –Class F 312,641.679 – – (28,127.047) 284,514.632Class G 64,772.586 1,902.237 – 26,262.455 92,937.278

4,597,216.551 295,309.708 (75,343.023) – 4,817,183.236

19 Capital Commitments and Contingent Liabilities

There were contractual capital commitments of £10,523,762 (2016: £5,728,959) at the balance sheet date which had not been accounted

for in the financial statements.There were no contingent liabilities at the year end.

20 Finance Costs: Distributions Per Unit*

Period to Quarter to Quarter to Quarter to Period to Total29 June 2016 29 September 2016 30 December 2016 30 March 2017 31 March 2017 2017

£ £ £ £ £ £

Gross amount 3.83 3.91 3.70 3.78 0.02 15.24Income tax deducted (0.76) (0.78) (0.74) (0.75) (0.00) (3.03)

Net income 3.07 3.13 2.96 3.03 0.02 12.21Expenses (0.46) (0.48) (0.45) (0.46) (0.01) (1.86)

Net amount distributable 2.61 2.65 2.51 2.57 0.01 10.35

Gross return assuming prevailing rate of tax at date of distribution 3.37 3.43 3.25 3.32 0.01 13.38*Income is allocated monthly but paid quarterly. Monthly income accrues up to and including the day prior to the Pricing Day (being the last business day in the month). Thus,distributions paid for the quarter to 29 June 2016 included one day’s income for 31 March 2016. The table details distributions accrued per unit and consequently, this one day’sincome has been deducted from the figures.


55


Different investors are subject to a different management fee (see

note 9). Thus distributions are subject to the deduction of different

levels of expenses. The distribution rates shown are average

distributions taking a weighted average management fee.

Different investors are also paid distributions gross or net of tax

based upon their individual circumstances (see note 3). The table

details those distributions paid net of tax although the gross return

gives an equivalent amount payable to Unitholders who receive

their income gross of tax.

This distribution is not in the form of a dividend.


22 Post Balance Sheet Events

There have been no material post balance sheet events which would provide additional evidence relating to conditions that existed

at the balance sheet date, or events indicating that it is not appropriate to apply the going concern basis of accounting.

21 Notes to the Statement of Cash Flows

2017 2016£000s £000s

Total comprehensive income for the financial year before finance costs and taxation 44,805 135,771Net loss/(gain) on investment properties/investments 17,484 (71,807)Net interest income (168) (228)Lease incentives (3,149) (961)

Operating profit 58,972 62,775

Working capital movements:– (Increase)/Decrease in debtors 1,513 (2,223)– Increase in creditors 2,848 3,889

Net cash flow from operating activities 63,333 64,441

56


The Trust is a member of the Association of Real Estate Funds “AREF”. Further information regarding AREF and Threadneedle PropertyUnit Trust can be found at www.AREF.org.uk

The additional information provided in this section complies, where applicable, with the minimum and best practice guidelines asoutlined in the Code of Practice (version March 2017) as issued by the Association of Real Estate Funds.

Net Asset Value*Over the last five years as at: Net asset value of Net asset value

the Trust (£) per unit (£)

31 March 2017 1,360,629,047 282.4631 March 2016 1,312,112,297 285.4131 March 2015 1,150,971,954 268.1931 March 2014 929,293,513 241.6431 March 2013 798,346,014 230.87

The offer and bid prices quoted below are not affected by the Unit Classes described in note 8.

Offer and Bid** PriceBetween March 2016 and March 2017

March 2017 (£) March 2016 (£) Decrease (£) Decrease (%)

Offer price 298.97 303.13 4.16 1.4Bid** price 278.89 281.46 2.57 0.9

Offer Price RangeOver the last 5 years for the period ending: Highest offer (£) Lowest offer (£) Range (%)

31 March 2017 304.75 294.24 3.331 March 2016 303.13 284.86 6.031 March 2015 282.78 256.79 9.231 March 2014 255.17 242.48 5.031 March 2013 251.97 242.24 3.9

Bid** Price RangeOver the last 5 years for the period ending: Highest bid** (£) Lowest bid** (£) Range (%)

31 March 2017 282.96 274.10 3.131 March 2016 282.79 266.50 5.831 March 2015 264.55 240.24 9.231 March 2014 238.73 226.85 5.031 March 2013 235.73 226.62 3.9* The Net Asset Value of the Trust and the Net Asset Value per unit quoted in this table are based upon balance sheet valuations, rather than unit price valuations.** The “scaled exit cost” basis for redemptions of units allows Unitholders to achieve between 1.3% below net asset value and 6.3% above net asset value per unit upon redemption,dependent upon investor inflows and outflows in that month. The bid prices quoted in the table are based upon Unitholders achieving the minimum price (1.3% below net assetvalue per unit) and do not necessarily reflect the realisation prices that may have been obtained in practice.

Additional Information (Unaudited)

57


Finance Costs: Distributions per Unit*Over the last 5 years Unit Class Opening Closing Distribution Yield on Yield onfor the period ending: Offer Offer Accrued closing closing

price £ price £ £ NAV Offerprice % price %

31 March 2017 A 303.13 298.97 13.35 4.7 4.5B 303.13 298.97 12.96 4.6 4.3C 303.13 298.97 11.55 4.1 3.9D 303.13 298.97 11.94 4.2 4.0E 303.13 298.97 – – –F 303.13 298.97 14.28 5.1 4.8G 303.13 298.97 13.53 4.8 4.5Average 303.13 298.97 13.38 4.7 4.5

31 March 2016 A 282.78 303.13 14.26 5.0 4.7B 282.78 303.13 13.87 4.9 4.6C 282.78 303.13 12.47 4.4 4.1D 282.78 303.13 12.86 4.5 4.2E 282.78 303.13 9.27 3.3 3.1F 282.78 303.13 14.95 5.2 4.9G 282.78 303.13 14.44 5.1 4.8Average 282.78 303.13 14.30 5.0 4.7




*Different management fees were applicable to different investors (see note 8) causing differing levels of distributions to accrue to Unitholders. The table above gives both anaverage distribution accrued; based upon a weighted average management fee, together with a breakdown of the actual distributions paid per Unit Class.

Class G units came into existence 31 December 2010 and Class F units came into existence 28 August 2009.

Additional Information (Unaudited)(continued)

58


Number of Units in IssueOver the last 5 years as at: Unit Class Number of

units in issue

31 March 2017 A 4,020,514.005B 417,726.003C 369.624D 1,121.694E –F 284,514.632G 92,937.278

4,817,183.236

31 March 2016 A 3,723,638.811B 492,426.991C 2,269.090D 1,467.394E –F 312,641.679G 64,772.586

4,597,216.551

31 March 2015 A 3,643,359.242B 319,977.209C 2,265.436D 1,435.749E 72,307.731F 222,556.192G 29,785.777

4,291,687.336

31 March 2014 A 3,281,139.951B 235,609.653C 2,297.981D 2,101.107E 72,307.731F 222,556.192G 29,785.777

3,845,798.392

31 March 2013 A 3,116,914.658B 160,194.160C 2,414.170D 2,129.461E 72,307.731F 75,234.272G 28,804.797

3,457,999.249

Annualised Unit Price Performance – NAV to NAV Basis (adjusted for net income)For the period Trust’s AREF/IPD PPFI All Balanced

Performance % Property Fund Index Weighted Average %

March 2017 3.8 3.73 Years to March 2017 (p.a.) 10.7 10.25 Years to March 2017 (p.a.) 9.2 8.510 Years to March 2017 (p.a.) 3.5 2.11 Year to March 2016 12.0 3.31 Year to March 2015 16.9 16.61 Year to March 2014 11.6 11.91 Year to March 2013 2.2 0.31 Year to March 2012 3.2 5.3


59


Unit Turnover (all classes)For the year ending Number of Net asset Percentage of Percentage of31 March 2017 Units value of Units total net asset total net asset

as at year end value of the value of the(£) Trust as at Trust as at

start of year (%) year end (%)

Unit creations 295,309.707 83,413,180 6.4 6.1Unit redemptions 75,343.022 21,281,390 1.6 1.6

Unit AnalysisAs at 31 March 2017 ownership band Number of Unitholders Total % held

Less than 1% of Units in issue 172 22.741% or greater but less than 2% 24 34.582% or greater but less than 4% 8 22.334% or greater but less than 8% 4 20.35Greater than 8% (6.80% being the largest holding) – –

Total 208 100.00

Total number of Units in issue 4,817,183.236

Internal Investors 5.91External Investors 94.09

100.00

%

Largest Investor 5.91Largest 3 Investors 16.30Largest 5 Investors 24.32Largest 10 Investors 38.19

Total Expense Ratios (AREF basis)at 31 March 2017

Average Net Assets (NAV) £1,314,692,817

% of NAVper annum

Fund Management Fees 0.59Fund Operating Expenses 0.08Total Expense Ratio (TER) 0.67Property Expense Ratio (PER) (excludes items in TER) 0.65Real Estate Expense Ratio (REER) (TER + PER) 1.32Performance fees 0.00

Portfolio Turnover Ratioat 31 March 2017

Average Net Assets (NAV) £1,314,692,817

% of NAVper annum

Portfolio Turnover Ratio 0.41Transaction Costs £4,349,866


60


Threadneedle Property Unit Trust is an open-ended collectiveinvestment scheme that provides an opportunity for investors tohave an indirect investment exposure to a diversified portfolioof property assets in the United Kingdom.

The Trust is constituted by a Trust Deed dated 15 June 1967 (assubsequently amended and restated). Investment in the Trust isopen to pension funds, insurance companies and othercorporate and institutional investors. Units may also be issued towealthy individuals whom the Manager considers haveappropriate experience to invest.

Management of the TrustBNP Paribas Securities Services Trust Company (Jersey) Limitedand BNP Paribas Securities Services Trust Company Limited asTrustees and Custodian receive subscriptions for units and holdthe underlying investments and other assets of the Trust.Threadneedle Investments (Channel Islands) Limited, asManager, is responsible for the overall management of the Trust,including investment strategy, management of the propertyportfolio, issue of new units and preparation of financialstatements for distribution to investors. The Manager meets notless than once every quarter to monitor investment policy anddiscuss progress of the Trust.

AIFMD Remuneration Disclosures 2016-17 (unaudited)This disclosure is made in respect of the remuneration policy ofThreadneedle Asset Management Sárl (“TAM Sárl” or “theGroup”), as it applies to Threadneedle Investments (ChannelIslands) Limited (“the Manager”) in respect of the AlternativeInvestment Fund Managers’’ Directive (“AIFMD”) and the FCA’sassociated SYSC 19B requirements. The Remuneration Policyapplies to all its subsidiary entities, including those authorised asAIFMs under AIFMD, and was last approved by theRemuneration Committee in December 2016. The remunerationrequirements under AIFMD were applied from 1 January 2015,2015 being the first full performance year commencing after theManager’s authorisation as an AIFM.

1. The Remuneration Committee

The Remuneration Committee of TAM Sárl is a sub-committee

of the TAM Sárl Board with the responsibility to establish the

philosophy and objectives that will govern the Group’s

compensation and benefit programmes; review and approve

compensation and benefit plans, policies, and practices; and

oversee and approve the Group’s remuneration. It has been

determined to be independent of the day-to-day executive

management of the Group, its Members being Directors of

the Group who are nominated by Ameriprise Financial, the

Group’s parent company.

Current Committee Members are Mr Walter Berman,

Mr John Junek and Mr Ted Truscott. Meetings are normally

held in January, March, June, September and December. The

Group’s Global Head, Reward acts as Secretary to the

Committee. The Committee may invite the attendance of any

Group employee or functional expert from the parent

company as deemed appropriate, to allow it to fulfil its

responsibilities including ensuring remuneration is

consistent with effective risk management and does not

encourage excessive risk taking.

2. Determining Incentive Remuneration Pools

The Manager made its annual Total Incentive Award decisions

from separate pools covering the Property business,

Distribution unit, Investments business and Support

functions, aggregated for governance and oversight at the

EMEA regional level. Those pools are determined at the final

discretion of the Remuneration Committee with reference to

four un-weighted factors being a ‘Top-Down’ assessment of

market practice, legal and regulatory requirements and any

other internal or external contextual factors; a ‘Bottom-Up’

calculation based on business performance against Plan and

Target Incentive level for the firm (see ‘Pay for Performance’

below); the overall financial and strategic performance of the

Group; and the financial and strategic performance of

Ameriprise Financial as the Group’s parent company and

shareholder. The Committee also receives ongoing reports

through the year from the Risk function regarding risk

assessments and any themes or areas of note related to risk

control or risk-related behavioural concerns.

The Committee takes all of these factors into account in order

to make a balanced decision on the Total Incentive pool for

the year in question.

3. Determining Individual Total Incentive Awards

Individual reward decisions are wholly discretionary,

although strongly informed by the annual performance

appraisal and by known market remuneration levels for

equivalent jobs as well as by the pool funding available. Risk

and Compliance provide a critical input to final performance

rating setting, ensuring that any risk and relevant behavioural

concerns are reflected in performance appraisals and

subsequently in remuneration recommendations. The Heads

of Risk and Compliance also report directly to the final

Remuneration Committee of the award process to ensure that

the Committee receives a direct report on which to base its

final risk adjustment decisions.

Base salaries are maintained at a market-competitive level in

order to ensure that, if required, it is possible to award zero

incentive.

Pay for Performance

The bottom-up element of the incentive pool determination

process measures team and wider business performance

against key business targets for each area of the Group,

including longer-term investment performance for the

Investments and Property divisions and a mix of gross and

net sales for Distribution. Investment performance is

assessed against each fund’s benchmarks and its risk profile,

over a time period reflecting the nature of the asset class and

fund in question. All such assessments’ impacts on the

bottom-up calculation are capped so as not to incentivise

managers to take excessive risk in order to deliver higher

About the Trust (Unaudited)

61


incentive pools. While the Group and parent company

financial and strategic results are important factors in pool

determination, the model is set up to ensure that delivery of

the business’ core goals, including delivering investment

performance to its customers, is an explicit and significant

driver in pool determination for those divisions.

Individual discretionary awards from the available pool, in

context of market-competitive reward levels for the job in

question, are driven strongly by each individual’s ratings

against Goals (objectives) and the Group’s Values, each of

which is separately rated on a 5-point scale to ensure the

Values assessment is given due prominence. Goals focus on

the key deliverables for the role that year, in particular on the

delivery of investment performance for Investments

employees and for the Property division: all employees are

also managed against a mandatory Risk Management Goal.

Investment performance, where relevant to the role, is

assessed against each fund’s benchmark and its risk profile.

Ratings are consistency-checked across the business with the

input of the Heads of Risk and Compliance to ensure balance

and due reflection of risk management. There is no pre-

determined grid or formula driving awards, which are

discretionary in order to be able to account for and reflect all

relevant factors.

Where additional performance fee-related remuneration

arrangements are in place, payments are made only on

realised performance fees and are subject to oversight in the

same way as annual incentive awards.

Where ‘carried interest’ schemes are in place for specific

funds, all payments are made from a performance fee

calculated as a defined % of the fund’s return to investors

above the absolute return hurdle agreed with investors. No

payments are made to executives through these schemes until

investors have received the return of their invested sum and

the designated hurdle rate of return on that investment: if that

hurdle is not reached, no carried interest payments are made.

Delivery of Total Incentives

While the Group’s current assessment is that, under UK

proportionality guidance, the Manager would not be required

to apply the deferral rules in SYSC 19B, Threadneedle believes

that deferred awards for higher earners are a matter of good

practice and an important part of aligning key staff’s interests

with the long-term interests of customers and shareholders.

To that end, Total Incentive awards for all employees in the

Group may be delivered partly in deferred awards through

the Ameriprise Financial Long-Term Incentive Award (“LTIA”)

programme.

4. Identified Staff

The Manager defines its Identified Staff in line with the

definitions provided by SYSC 19B and associated guidance.

Those Identified Staff are the senior management, risk takers,

control functions and other employees whose total

remuneration takes them in to the same bracket as senior

management and risk takers, whose professional activities

have a material impact on the risk profiles of the Manager or

of the funds it manages. In practice, that includes the named

Fund Managers of the Manager’s funds.

5. Remuneration Payment Disclosure

The AIFM’s performance periods for remuneration operate on

an April to March performance year, making 2015-16 the first

performance year subject to the full AIFM remuneration rules.

The Company operates an individual performance year on a

calendar year, payments and LTIA grants in respect of which

were made in February 2016.

Total Remuneration paid by the Manager to 3 AIFM

Remuneration Code Staff Senior Managers in respect of its

AIFM activities in the 2016-17 performance year was £0.08m,

of which £0.016m was fixed and £0.068 was variable. Total

Remuneration paid to other members of AIFM Remuneration

Code Staff whose actions had a material impact on the risk

profile of the AIFM was £0.18m, of which £0.14m was fixed

and £0.04m was variable.

Because the AIFM does not employ any staff, and those

working on the AIFM’s business also perform services for

other regulated and non-regulated companies, the

remuneration for AIFM Remuneration Code Staff has been

apportioned for most Code Staff according to the AIFM’s total

Assets under Management (“AuM”) in context of the EMEA

Region’s total AuM, and in turn in respect of the AIFM’s total

AIF assets as a proportion of its own total AuM. That

proportional asset-weighted calculation has been applied to

each member of AIFM Remuneration Code Staff’s Total

Remuneration for the year, taking account of dates joining or

leaving AIFM Remuneration Code Staff during the year and

any other broader leadership responsibilities, in order to

represent that proportion of their remuneration attributable

to the AIFM’s management of AIFs. Exceptions to that rule

were made for the senior management team of the Columbia

Threadneedle Property business, who serve as Directors of

the AIFM as well as undertaking Portfolio Management

activity for the AIFs, where a qualitative assessment was

undertaken of the proportion of time and activity aligned to

the AIFM.

Also due to the AIFM not employing any staff, and that those

staff who do work on the AIFM’s business will also support a

number of other entities and activities to various degrees,

Total Remuneration for all employees working on the AIFM’s

business cannot be apportioned out of the wider business to

any degree of meaningful reliability. As such, while disclosure

of AIFM Remuneration Code Staff’s attributable Total

Remuneration is comprehensive, remuneration for this group

is therefore nil under this requirement and this statement

does not include quantitative disclosures for that broader

employee group.

About the Trust (Unaudited)(continued)

62


Valuation and SubscriptionsMonthly valuations of the Trust’s properties are carried out byCBRE Limited. The unit price is computed monthly based uponthese valuations and capital expenditure incurred. Thecomputation forms the basis for the determination of the issueand redemption prices of units by the Manager. Net income is notincluded in the calculation, being distributed on a quarterly basisto Unitholders. Subscription for Units may be made monthly withunits issued on a Pricing Day at the Subscription Price. Whenrequired, the Trust operates a waiting list with respect to theissuance of new units in order to control liquidity levels.

The Manager, at its discretion, may accept or reject anysubscription.

TaxationThe Trustees are not resident in the UK for taxation purposes. TheTrust is outside the scope of the UK capital gains tax regime. Theincome of the Trust belongs directly to Unitholders and is paidgross to Unitholders who are resident in the UK and other persons who have received authority from HM Revenue &Customs to receive rent gross. Tax is deducted at source (at thebasic rate applicable in the year of 20%) from rental profit paidto Unitholders who are not resident in the UK and who have notreceived authority to receive rent gross. UK interest is paid netof UK income tax at the lower rate unless it is received gross oftax in which case it is paid gross to the Unitholders.

Exempt Unitholders are entitled to reclaim any income taxdeducted at source. Other Unitholders may reclaim income taxdeducted at source if and to the extent that it exceeds their UKtax liability on income.

The Board of HM Revenue & Customs has certified the Trust as adistributing fund for the purposes of Chapter V Part XVII of theIncome and Corporation Taxes Act 1988 in respect of allapplicable accounting periods up to 31 March 2010.The Managerdoes not intend to seek Reporting Fund status for the Trust inrespect of the accounting period commencing on 1 April 2010and any subsequent accounting periods on the basis that theTrust is a transparent fund within the meaning of Regulation II ofPart One of the Offshore Funds (Tax) Regulation 2009, the Trustwill not hold interests in non-reporting funds which amount intotal to more than 5% by value of its assets and the Trust makessufficient information available to Unitholders to enable them tomeet their UK tax obligations in respect of their units.

CertificationThe Trust is non-certificated. Title to units will be evidenced solelyby reference to entries in the register.

Management of the TrustThe roles and responsibilities of all parties involved in runningthe fund who have obligations, or the ability to set andimplement policies or strategies relating to the management ofthe fund can be found in the current prospectus.

Investment restrictions and the procedure for the managementof conflicts of interest can also be found in the currentprospectus which is available upon request from the Manager.

Transfer and Realisation of UnitsAfter written notification to the Manager, units may betransferred on the first Pricing Day following receipt of theinstrument of transfer.

After written notification to the Manager, units may be realisedat a Realisation Price determined on the fifth Pricing Dayfollowing receipt of the Realisation Notice, subject to the deliveryof appropriate documents to the Manager. Payment willnormally be made to the investor as soon as practical followingthis fifth Pricing Day. The Manager has the right to defer paymentif it considers it necessary for the protection of the interests ofcontinuing Unitholders to do so.

Reporting, Financial Statements and DistributionThe Trust’s year-end is 31 March. The report and financialstatements are distributed to Unitholders at least 21 days beforethe Annual General Meeting (usually held in July).

Distributions of income to Unitholders are made quarterly, beingas soon as is practical following the last days of March, June,September and December (after deductions of income tax whereappropriate). A tax certificate is sent with each distribution toallow investors to make individual claims for repayment of tax.

Borrowing PowersUnder the terms of the Trust Deed, the Trustees are permitted tomake borrowing arrangements for the Trust up to 35% of the netasset value of the Trust.

Derivative ExposureUnder the terms of the Trust Deed, the Trustees are permitted tohold Approved Investments on behalf of the Trust not exceeding10% of the underlying property assets at the time.

Business Continuity StrategyThreadneedle has in place a business continuity and disasterrecovery plan to enable swift recovery and resumption of normaloperations following an incident. Regular exercises of this planare held at dedicated recovery sites attended by critical staff.These exercises are externally audited. Threadneedle was short-listed for the CIR Business Continuity Strategy of the Yearaward in 2007 and was again short listed for the same awardin 2009.

Social ResponsibilityESG factors influence decision making on the Fund when aproperty is purchased, in our evaluation of the assets risk factors,during the holding period, and as we look to create value on theasset. The Fund Manager, takes ultimate responsibility for theFund and the assets held within it.

Before undertaking a purchase, the Property team pays closeattention to all factors affecting the value of the investmentopportunity including those relating to ESG. Planned preventivemaintenance and refurbishment cost forecasts specificallyconsider ESG factors, including measures to increase theproperty’s EPC Rating and to future proof it as part of anyrequired refurbishment programme.


63


Furthermore, we undertake Phase I environmental assessmentson all new property acquisitions, and more detailed Phase II andflood risk assessments, when appropriate. We assess andincorporate any cost implications identified by each property’sEnergy Performance Certificate (EPC) into our financial models.

Our Property Governance and Insurance team undertakes a riskmanagement assessment including providing an independentperspective across a range of issues including, but not limited to,deleterious materials, environmental factors, health and safety etc.

We also undertake a number of checks on our tenants includingthose relating to ‘politically exposed persons’ (PEP) andsanctions. While we do not explicitly restrict the type of tenantwe have, the way tenants use the properties is an importantconsideration for our Property team, given the impact this canhave on the holding and its investment value.

ESG issues play a central role in our asset managementdecisions and we comply with all statutory requirements. Weadopt cost effective yet relevant solutions that, through ourrolling refurbishment plan, are improving the EPC rating acrossthe whole portfolio.

Our oversight team sets specific objectives for the propertymanagement teams we work with and not only must theycomply with statutory requirements for EPC, CRC and HeatNetwork regulations, they are also measured against our ESG targets.

Outsourced providers’ progress and success against thesetargets are reviewed semi-annually.

Finally, we adhere to the Carbon Reduction Commitment (CRC),the Energy Saving Opportunity Scheme (ESOS), and HeatNetwork Regulations. Columbia Threadneedle contributes to theGlobal Real Estate Sustainability Benchmark (GRESB).

Additional InformationThe value of investments may fall as well as rise and investorsmay not get back the original investment. It may be difficult orimpossible to realise an investment in the Trust because theunderlying property concerned may not be readily saleable. Thevalue of the property held by the Trust is a matter or the valuer’sopinion and the true value may not be recognised until theproperty is sold.

This document should not be circulated to private investors,other than in those circumstances provided in the relevantregulations to permit the promotion of unregulated collectiveinvestment schemes/unclassified funds.

This document does not constitute or form any part of any offerto issue or sell, or any solicitation of any offer to subscribe orpurchase any units nor shall it or the fact of its distribution formthe basis of, or be relied on in connection with any contracttherefore.

Please note that the use of gearing creates additional risk byraising the Trust's exposure to capital risk and interest costs. Insome circumstances the use of gearing can also affect theeligibility of the Trust for certain investors.


Management and Administration

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Manager(regulated by the Jersey Financial Services Commission)Threadneedle Investments (Channel Islands) LimitedLiberté House19-23 La Motte StreetSt HelierJerseyJE2 4SY

Board of the ManagerChairmanRichard Prosser BSc FCA

Kevin Mundy ACISDavid Litton ACIBChris Morrogh MA MRICSDon Jordison BSc (Hons) MBA MRICSPaul Le Marquand BSc (Hons) MRICS

Investment AdvisorThreadneedle Portfolio Services LimitedCannon Place78 Cannon StreetLondonEC4N 6AG

Fund Manager/DirectorChris Morrogh MA MRICS

Managing DirectorDon Jordison BSc (Hons) MBA MRICS

Managing AgentsWorkman LLPAlliance House12 Caxton StreetLondonSW1H 0QS

Savills33 Margaret StreetLondonW1G 0JD

Standing Independent ValuersCBRE LimitedSt Martin’s Court10 Paternoster RowLondonEC4M 7HP

JLL Ltd30 Warwick StreetLondonW1B 5NH

Trustees(regulated by the Jersey Financial Services Commission)BNP Paribas Securities Services Trust Company (Jersey)LimitedLiberté House19-23 La Motte StreetSt HelierJerseyJE2 4SY

BNP Paribas Securities Services Trust Company LimitedLiberté House19-23 La Motte StreetSt HelierJerseyJE2 4SY

Administrators/Registrars(regulated by the Jersey Financial Services Commission)BNP Paribas Securities Services S.C.A., Jersey BranchLiberté House19-23 La Motte StreetSt HelierJerseyJE2 4SY

Jersey Legal AdvisorsMourant Ozannes22 Grenville StreetSt HelierJerseyJE4 8PX

UK Legal AdvisorsHogan Lovells International LLPAtlantic House50 Holborn ViaductLondonEC1A 2FG

Independent AuditorsPricewaterhouseCoopers CI LLP37 EsplanadeSt HelierJerseyJE1 4XA

Bankers(regulated by the Jersey Financial Services Commission)BNP Paribas Securities Services S.C.A., Jersey BranchLiberté House19-23 La Motte StreetSt HelierJerseyJE2 4SY

Lloyds Bank plcCity OfficeGillinghamKentME8 0LS

Important Information

65


The Trust is not an authorised unit trust scheme for the purposesof the Trustee Investment Act 1961 or the Income and CorporationTaxes Act 1988.

In the UK, the Trust is an unregulated collective investmentscheme for the purposes of Section 238 of the Financial Servicesand Markets Act 2000. Accordingly, this document may only becommunicated in the UK to persons described in the FinancialServices and Markets Act 2000 (Promotion of CollectiveInvestment Schemes) Exemption Order 2001 and to persons towhom Units are permitted to be promoted in accordance withthe FCA’s Conduct of Business rules. In Jersey, the Trust is treatedas an unclassified fund for the purposes of the CollectiveInvestment Funds (Jersey) Law 1988 and is regulated by theJersey Financial Services Commission.

Units in the Trust may only be promoted in accordance with theaforementioned legislation. Past performance is no guide tofuture returns. The value of investments and income from themcan go down as well as up. Any opinions expressed in thisdocument are made as at the date of issue and are subject tochange without notice. Tax concessions are not guaranteed andmay change in the future. It may be difficult or impossible torealise an investment because the underlying propertyconcerned may not be readily saleable. The value of property is

a matter of a valuer’s opinion and the true value may not berecognised until the property is sold. Both the Threadneedlename and logo are trademarks or registered trademarks of theThreadneedle group of companies.

This document does not constitute or form any part of any offerto issue or sell, or solicitation of any offer to subscribe orpurchase any units, nor shall it or the fact of its distribution formthe basis of, or be relied on, in connection with any contracttherefore. Recipients of this document who intend to apply forunits are reminded that any such application may be made solelyon the basis of the information and opinion contained in theprospectus which may be different from the information andopinion contained in this document.

To invest in the Trust or request further details, contact BNPParibas Securities Services S.C.A., Jersey Branch on 01534813827 or write to:

BNP Paribas Securities Services S.C.A., Jersey BranchLiberté House19-23 La Motte StreetSt HelierJerseyJE2 4SY

Issued by Threadneedle Investments (Channel Islands) LimitedRegistered in Jersey, Company number 82489.Registered office: Liberté House, 19-23 La Motte Street, St Helier, Jersey, JE2 4SYRegulated by the Jersey Financial Services Commission

To find out more visit columbiathreadneedle.comColumbia Threadneedle Investments is the global brand name of the Columbia and Threadneedle group of companies. columbiathreadneedle.com 154214

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