THREADNEEDLE UK PROPERTY AUTHORISED INVESTMENT FUND€¦ · 03/01/2020 · property investment...

THREADNEEDLEUK PROPERTY AUTHORISED INVESTMENT FUND

COLUMBIATHREADNEEDLE.COM

INTERIM REPORT AND UNAUDITED FINANCIAL STATEMENTSTHREADNEEDLE UK PROPERTY AUTHORISED INVESTMENT FUNDNOVEMBER 2020

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Threadneedle UK Property Authorised Investment Fund Interim Report and Unaudited Financial Statements November 2020

Contents

Introduction 2

Company Information 2

Authorised Corporate Director’s Report* 3

Investment Report* 4 – 6

Property Portfolio

Retail 7 – 11

Retail Warehouse 12 – 14

Offices 15 – 20

Supermarket 20

Industrial 21 – 27

Leisure 28

Retail/Residential 29

Car Showroom 30

Shopping Centres 31

Financial Statements

Statement of Total Return 32

Statement of Change in Net Assets Attributable to Shareholders 32

Balance Sheet 32

Cash Flow Statement 32

Distribution Table 32 – 33

Comparative Table Disclosure 34 – 36

Notes to the Financial Statements 37

Shares Price Performance - Bid to Bid Basis* 38

Shareholder Turnover and Shareholder Analysis 38

Finance Costs: Distributions per Share 39

Important Information* 40 – 45

Directory* 46

*These pages comprise the Authorised Corporate Director’s Report.

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This Interim Report reviews the performance of the Threadneedle UK Property Authorised Investment Fund and the market background over the 6 months to 15 November 2020.

Columbia Threadneedle Investments has a dynamic, award winning approach to property investment. Our experienced investment team has been investing since 1994, and the focus on maintaining high yields has distinguished us from the market.

Suspension On 18 March 2020 Columbia Threadneedle Investments temporarily suspended dealing in the Company and its feeder fund, the Threadneedle UK Property Authorised Trust. This decision followed notification from the Fund’s independent valuer, CBRE, that they were unable to value the Fund’s assets with certainty in the current exceptional market environment. The Fund reopened on 17 September.

Columbia Threadneedle Investments property team has a distinctive investment philosophy which can be summarised in the following five principles:

Stock picking is key We believe that specific stock selection within sectors is the primary driver of long-term performance. Our experience, resources and contacts allow us to select the most appropriate and attractively valued properties for our funds while avoiding exposure to property shares.

A preference for high yielding investmentsWe believe that over the long term, income is the dominant component of property total returns. As such, yield is a key focus of our stock selection process.

Flexible buyersWe do not populate our portfolios with trophy assets, as these frequently offer unappealing yields. Instead, we seek good value and investment potential across all sectors, geographies and lot sizes.

Avoid speculative developmentThis kind of activity locks up capital for long periods of time and can be risky. We prefer to buy standing investments with the potential to improve returns.

Active asset management unlocks valueWe work hard to maximise the returns from the properties we own, refurbishing and updating buildings regularly in order to increase capital value and improve rental growth potential.

We hope that you find this Interim Report informative. If you have any further queries regarding any aspect of your investment or about other Columbia Threadneedle Investments products, please contact us directly on 0800 068 3000 (8am – 6pm Monday to Friday) or speak to your financial adviser. Alternatively, please visit columbiathreadneedle.com.

CompanyThreadneedle UK Property Authorised Investment Fund Registered Number IC000976

Registered OfficeCannon Place, 78 Cannon Street, London EC4N 6AG

DirectorThere is a sole director, the Authorised Corporate Director (the ACD), which is Threadneedle Investment Services Limited.

Board of Directors of the ACDK Cates (non-executive)J GriffithsA Roughead (non-executive)P Stone (Resigned from the Board on 15 June 2020)R VincentL Weatherup

Introduction Company Information

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The ACD, Threadneedle Investment Services Limited, has pleasure in presenting the Interim Report and Unaudited Financial Statements for Threadneedle UK Property Authorised Investment Fund for the 6 months to 15 November 2020.

We hope that you find the report informative. Should you require any further information regarding any aspect of your investment, or about other Columbia Threadneedle products, we would be pleased to help. Alternatively, you may find it helpful to visit columbiathreadneedle.com for further information about Columbia Threadneedle.

Thank you for your continued support.

L Weatherup Director

DIRECTORS’ STATEMENTSIn accordance with the requirements of the Financial Conduct Authority’s Collective Investment Schemes (COLL) Sourcebook, we hereby certify the Interim Report and Unaudited Financial Statements on behalf of the Directors of Threadneedle Investment Services Limited.

L Weatherup R VincentDirector Director

13 January 2021

Authorised Corporate Director’s Report

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Investment ObjectiveIt is intended that the Threadneedle UK Property Authorised Investment Fund (the Company) be a Property Authorised Investment Fund (PAIF) at all times and so its investment objective is to carry on Property Investment Business and to manage cash raised from investors for investment in the Property Investment Business as further described below. HM Revenue & Customs has confirmed to the ACD that the Company meets the requirements to qualify as a PAIF under regulation 69O of the PAIF Tax Regulations.

The objective of the Company is to obtain a total return based on income and capital appreciation predominantly through investment in certain kinds of real estate, property related securities, government and public securities and units in collective investment schemes.

Investment PolicyWhere the investment policy of the Company contains the word ‘primarily’, in the description of its investment policy, the Company will invest not less than two-thirds of the value of the property in the specified kind of assets.

The Company will invest primarily in UK commercial real estate. It may also invest in US or Continental European real estate, property-related securities, property investment companies, collective investment schemes (including other collective investment schemes managed, advised or operated by the ACD or its associates), cash and near cash, warrants, deposits and money market instruments. Derivatives may be used for investment purposes on the giving of 60 days’ notice to Shareholders. At the date of the report derivatives are used for efficient portfolio management purposes only.

ReviewThis report covers the period from 16 May 2020 to 15 November 2020.

Status of the CompanyThe Company is a NON-UCITS retail Scheme for the purpose of the Financial Conduct Authority’s Collective Investment Schemes Sourcebook (COLL) an alternative investment fund for the purpoes of the AIFM Directive, and a standalone company for the purposes of OEIC Regulations, each as amended from time to time.

Property Market CommentaryThe COVID-19 pandemic has been a major global shock that continues to impact daily life and economic activity around the world. On the 23 March 2020 the UK Government implemented strict social-distancing measures creating a rapid dislocation of ‘normal’ consumer consumption patterns with all non-essential employees working from home under a ‘Lockdown’. During the summer period restrictions were eased and economic activity supported through the introduction of UK Government initiatives such as the furlough wage support and ‘Eat out to Help out’ schemes aimed at preventing a rise in unemployment. The former has now been extended to March, as economic uncertainty remains high following the change in the Government’s latest directive of a second Lockdown for England which came into effect issued on 5 November 2020, following similar directives in the devolved nations.

The UK property market, as represented by the MSCI UK Monthly Property Index, generated a total return of +0.7% in Quarter 3 (Q3) 2020, with income at +1.4% and capital value decline at -0.7%. The trends captured through Q3 were consistent with those in October 2020 with positive total returns of +0.4%, comprising +0.5% income return with -0.1% capital growth. This represents a resumption of positive total returns for UK commercial property driven by a recovery in ‘All Property’ capital values from -3.6% in Q2 2020 to

-0.7% in Q3 2020 and -0.1% in the month of October, representing increased confidence in the commercial property sector as the UK emerged from ‘Lockdown’.

Looking across the sectors, valuation movements broadly reflected the perceived impact and resilience to the pandemic and the resultant acceleration of pre-existing trends. In Q3 2020 the industrial sector recorded capital value growth of +1.0% followed by a -0.7% decline in the office sector and -2.7% in the retail sector. Total returns for Q3 2020 across the sectors evidenced +2.2% for industrial, +0.5% for offices and -0.9% for retail. Despite the prevailing uncertainty, rent collection has so far proved resilient. Rent collection across Columbia Threadneedle Investments office portfolios averaged c.90% over Q2 and Q3, which is the highest of all sectors, ahead of industrial and unsurprisingly followed by retail at the lowest rate with c.50%.

UK investment activity in Q3 2020 evidenced a c.48% increase to Q2 2020 volumes as the first ‘Lockdown’ eased, but at c.£6.5BN remains c.50% below the 5-year quarterly average. The largest single Q3 2020 investment transaction was Link Real Estate Investment Trusts (REITs) (Hong Kong based) acquisition of Morgan Stanley’s HQ in Canary Wharf for c.£380MM/c.4.5% Initial yield (IY) followed by Sun Ventures acquisition of 1 New Oxford Street for c.£174MM/c.4.2% IY and Tristan Capital Partners acquisition of Reading International Business Park for c.£120MM/c.6.1% IY. Despite some significant transactions in London, the lack of widespread activity in the capital was the principal reason for the quarter’s low transaction volumes. Investor demand for industrial property continues with the sector recording investment volumes at c.£1.6BN, c.19% below the sectors 5-year quarterly average. Investment activity in the retail sector remained subdued but renewed interest in the retail warehouse sector drove Q3 2020 retail investment volumes to c.£0.8BN.

Following the resumption of investment market activity, the Material Uncertainty Clause (MUC) imposed by Independent Valuers in March 2020 was lifted on a sector-by-sector basis according to the availability of comparable evidence. As expected, the MUC was lifted first for the in-favour industrial market in June 2020, followed by offices in August 2020 and finally retail in September 2020. As a result, a degree of unit pricing certainty for property assets was restored resulting in the resumption of trading in some, but not all Open-ended UK property funds as at mid-November.

The ‘All Property’ Net Initial Yield (NIY) recorded 5.15% in at the end of October and remains c.58 bps above the previous peak at 4.57% recorded in Jun-07. With the Base Rate (0.10%) and ‘risk free’ rate of 10-year Gilts (0.27%) at historically low levels, caution should be exercised when drawing comparisons with previous peak market yield pricing.

The UK commercial real estate market is forecast to experience uncertainty for the remainder of 2020 as the UK Government attempts to control the spread of the virus through the implementation of further ‘lockdowns’. In times of such material uncertainty, defensively positioned Funds with high relative income yields, significant levels of portfolio diversification and the potential to add value thorough pro-active asset management are most appropriately positioned to deliver relative out-performance.

Source: MSCI UK Monthly Property Index and Lambert Smith Hampton UKIT Q320 report as at 30 September 2020

All market statistics are taken from the MSCI UK Monthly Property index.

Investment Report

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UK Property Market Performance 12 Months to 30 September 2020

Retail Office IndustrialAll

PropertyTotal Return -12.7% +0.8% +4.1% -2.5%Income Return +6.9% +4.8% +4.7% +5.3%Capital Growth -18.4% -3.9% -0.6% -7.5%Rental Value Growth -8.3% +0.2% +1.7% -2.1%Yield Impact -12.6% -3.7% -2.3% -5.9%

Source: MSCI UK Monthly Property index, September 20

SuspensionIn light of the valuation uncertainty caveat sanctioned in an RICS Guidance Note on 19th March, and to ensure all investors, whether subscribing, holding or redeeming units are treated fairly, the Board in consultation with the Trustees announced its decision to suspend trading units in the Fund on 18th March 2020. The Fund re-opened on 17th September with a higher cash level of 19% (above the liquidity corridor), as we expected some redemptions following lifting of the suspension. During the suspension we carried out a strategic sales programme which ensured the Fund maintained its robust portfolio composition, including an overweight exposure to the industrial sector (versus MSCI Monthly Report Index) and a high, sustainable income component.

Portfolio Strategy and ActivityDespite the significant uncertainty caused by the unprecedented events this year, our underlying strategy remains unchanged. Income continues to constitute the core component of property returns, in line with the long-running average, meaning strong tenant retention remains key. We have always sought to invest in areas where a low supply of vacant units, combined with definitive occupier demand, significantly reduces void risk. We eschew lower-yielding trophy assets, and instead seek higher-yielding properties that undercut the market from a rent perspective and that can be upgraded to suit tenant requirements, while enhancing returns.

We have deployed the same approach in our high-street acquisitions, generally buying on pedestrianised pitches close to the main shopping centres in smaller towns, as these experience a similar footfall to those within the shopping centres. Our holding in central Reading exemplifies this approach: the area is undergoing major rejuvenation and our units are located at the centre of the most desirable zone for retailers.

It is for these reasons that where we have been selling out of the sector, we have consistently been able to achieve pricing in excess of the independent valuations as the underlying characteristic of the assets and nature of our stock selection ensure that these assets remain attractive to prospective purchasers.

As COVID-19 continues to cause significant uncertainty with regard to government policy and the impact this may have on occupational markets, a highly diversified approach is key to effective risk management. Our fund owns over 120 properties let to over 1,000 tenants. Our approach has proven itself in a variety of macroeconomic environments, achieving a 100-150 basis point income yield advantage against the MSCI UK Monthly Property index over the short, medium and long terms.

At the end of October 2020, the fund’s property portfolio comprised a total of 128 properties and 1,034 individual tenancies. The portfolio continues to offer the benefit of exceptional diversification. By way of illustration, the ten most valuable properties represent 26% of the total portfolio value; similarly, the ten

largest tenants in terms of total rental commitments represent just 16% of the entire portfolio rent roll. This diversification is a central component of the fund’s investment approach and acts as a powerful control on risk.

At the strategic level, the fund’s investment performance over the 6 months review period benefited from its relatively high exposure to the industrial and logistics sector, which was the stand-out performer. The fund’s office holdings performed well in the context of the office sector. The fund has no central London office exposure, although the majority of its business-space ownership is weighted towards the South and South East.

Fund Investment Activity The fund completed 5 transactions over the period, all of which were sales. These included some of the fund’s more granular holdings and a number of retail assets, where the Fund strategically sought to downweight its allocation to the sector given the challenging prospects and occupational headwinds facing the sector through the current period of economic uncertainty caused by COVID-19. The average sale price was £5.3m, while aggregate sales proceeds totaled £26.5m in the last 6 months.

Prudent liquidity management remains one of the hallmarks of the fund’s long-term strategy.

Property SectorDisposal

DatePrice

(£)

NIY (Topped

up)SalesBethel Square SC, Brecon Unit Shop Q3 20 1,825,000 15.1Sutton in Ashfield Retail

WarehouseQ3 20 1,631,462 13.1

Co-Operative Group Unit, Chelston Business Park, Wellington

Industrial / Warehouse

Q3 20 13,600,000 5.4

Heathway Mall, Dagenham, RM10 8RE

Shopping Centre

Q4 20 6,900,000 13.0

Christchurch House, West Bromwich

Town Centre Offices

Q4 20 2,545,000 8.5

Portfolio weighting relative to IPD UK Monthly Property Index as at 30 September 2020

35.2% (35.1%)

11.7% (12.1%)

29.8% (31.2%)16.6% (11.7%)

6.6% (10.0%)

OfficesIndustrialRetail warehouseRetailOther

Investment Report(continued)

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Portfolio Weighting by Geography at 30 September 2020

60%

3%

4%

15%

5%0%

1%12%

SouthYorks / HumbersideNorthWales

EastNorthern Ireland

MidlandsLondon

Responsible Investment (ESG)

The fund participated in the Global Real Estate Sustainability Benchmark (GRESB) for the first time in 2020. It achieved two stars and a score of 70 out of 100, ranking it 29th within its peer group of 79 funds.

The Fund reduced like-for-like electricity consumption by 15.9% and gas consumption by 7.4% between 2018 and 2019. Overall, greenhouse gas emissions were reduced by 20.1% on a like-for-like basis.

Market OutlookAs highlighted in the Property Market Commentary section of this report, all investment channels are likely to face uncertainty due to the current uncertainty caused by the COVID-19 pandemic. The fund continues to be well positioned against this uncertain backdrop, owing to the following factors as at end October 2020:

The fund has a significant income yield advantage (c. 100 basis points) versus the MSCI Monthly Property index (5.9% vs 4.9%).

The fund has no central London exposure.

It offers maximum diversification at both portfolio (c. 1,034 tenants and 128 properties) and investor levels.

The fund features a highly liquid average lot size of c. £6.3m.

It is positioned strategically, with a focus on the strongest underlying sub-sectors (c. 35% of direct property exposure is to the industrial market).

There is significant potential to add value through pro-active asset management across the portfolio, despite the potential challenges caused to certain occupational markets caused by the current pandemic.

The fund is defensively positioned, with no exposure to property company shares or speculative property development, and with zero property-level debt.

We anticipate that performance within the market will continue to diverge, most notably between the industrial/logistics sector and the high street retail sector. We expect the industrial sector to continue to outperform as competition for land, the continued trend towards online retailing, and the relatively low ongoing requirement for capital expenditure all act to increase rental and capital values. The fund’s portfolio is well placed in this context, with 35% by value in the industrial/logistic sector and with a focus on estates and small-to-medium-sized warehouse facilities.

The high street retail sector will continue to face the daunting headwind of growth in online retailing, and the consequential reduction in aggregate demand for physical retail accommodation. However, this will not be a uniform effect: dominant retail centres that offer a broader leisure experience, convenience offerings and appealing shopping environments are likely to prove more resilient, although this largely depends on government restrictions being eased in order for these businesses to benefit from the same footfall and spend as prior to the COVID-19 pandemic.

With diminishing capital value gains, income is once again providing the core component of the total return, in line with the long-running average. According to the MSCI UK Monthly Property index, 69% of the total return has been provided by income since 2000; hence, our investment philosophy centres on buying good quality assets let to reliable tenants, with sustainable rents. We own a third of the IPD UK Monthly Property index in terms of number of tenants in the UK, providing us with a wealth of in-house market intelligence.

In keeping with its fundamental philosophy, the fund continues to offer a highly appealing distribution yield. Over the twelve months to 15 November 2020, the fund’s distribution yield to unit holders has been 5.1%. Given the anticipated outlook, which features lower nominal total returns, this superior distribution yield represents an enhanced relative performance advantage for the fund.

Controls and risk management remain central to the overall management of the fund. Liquidity will continue to be controlled as circumstances require, ensuring the appropriate protection of unit holders’ interests. We also expect the fund’s excellent portfolio diversification to remain a significant positive in terms of performance and risk mitigation.

PerformanceWhile property returns are continuing to moderate, the case for property remains compelling on an income and portfolio-diversification basis. Our highly selective investment strategy focuses on a forensic analysis of all sectors nationwide and underpins the positioning of our highly diverse fund, which has delivered a high and sustainable income yield of between 100 and 150 basis points ahead of the MSCI UK Monthly Property index over one, three and five years.

Investment Report(continued)

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Property Portfolio of the Threadneedle UK Property Authorised Investment Fund

Retail

Less than £1 million in Value

% of TotalAssets 0.21

(0.21) Total MarketValue £1.8m

PrincipalTenants

Rental Incomeper annum

Next RentReview

Bedford1-3 Silver StreetFreehold retail unit and upper floors totalling 8,619 sq ft. JD Sports Fashion Plc

AM2PM Healthcare Ltd£50,000£20,000

17/09/2021N/A

Doncaster8 St Sepulchre GateLeasehold, mid-terrace retail unit with retail space on the ground floor and ancillary basement, first and second floors. Property totals 4,322 sq ft.

The Works Stores Ltd £65,000 N/A

Hinckley14/16 Castle StreetFreehold mid-terrace two-storey building comprising two ground floor retail units and first floor ancillary accommodation. Property totals 4,301 sq ft.

VacantHinckley V.E Limited

£0£29,640

N/AN/A

Nottingham1 Houndsgate & 2/4 Albert RoadFreehold corner retail unit with ground floor sales area and two ancillary upper floors and an unused former residential unit. Property totals 2,903 sq ft.

Flash Retail Limited £24,000 N/A

Between £1 million and £2.5 million in Value



PrincipalTenants


Next RentReview

AccringtonBroadway & Market WalkFreehold, two terraced retail parades with a total of eleven purpose built retail units. Property totals 58,774 sq ft.

Various £358,500 29/01/2021

Canterbury15-16 The Parade & 2 Rose LaneFreehold large retail unit over basement, ground and first floors with ancillary second floor totalling 10,125 sq ft.

Burtons/Dorothy Perkins (Arcadia Group Ltd)

£200,000 24/12/2020

CarmarthenUnits 2-12 Red StreetFreehold parade of seven retail units which are arranged over ground and first floors. Property totals 19,133 sq ft.

Various £330,500 01/02/2023

Chatham195/203 High StreetFreehold, two-storey corner retail unit. Ground floor retail space and first floor ancillary. Property totals 14,949 sq ft.

Various £165,500 N/A

Cheltenham112/114 &118/120 PromenadeFreehold double corner retail unit totalling 2,287 sq ft. Vacant £0 N/A

Guildford115 High StreetFreehold, a mid-terraced retail unit arranged over basement, ground and two upper floors. Property totals 5,484 sq. ft.

Nitrogen Limited £0 25/09/2030

Ipswich30-36 Tavern StreetFreehold. Four retail units arranged over basement ground and two upper floors. Grade II listed. Property totals 7,736 sq ft.

Various £16,500 06/05/2025

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Property Portfolio of the Threadneedle UK Property Authorised Investment Fund (continued)

Retail (continued)




PrincipalTenants


Next RentReview

Ipswich24/28 Tavern Street and 4/8 Dial LaneFreehold, block of six retail units arranged over basement ground and three upper floors. Property totals 16,594 sq ft.

Various £48,500 17/03/2021

Reading50 Broad StreetFreehold, a four-storey structure (including basement) of reinforced concrete frame construction. Ground and part of the first floor are retail sales areas. The remaining accommodation is used for storage. Property totals 6,325 sq ft.

Beaconsfield Footwear Ltd £0 23/02/2021

Stevenage9-11 The Forum Freehold, two retail units constructed in 1975. Property totals 35,450 sq ft.

New Look Retailers LtdWawelski Ltd

£0£43,500

21/02/202102/12/2021

Reading50 Broad Street

Ipswich4/8 Dial Lane

9



Retail (continued)

Promenade Cheltenham

Between £2.5 million and £5 million in Value


(1.87) Total Market

Value £14mPrincipal

TenantsRental Income

per annumNext Rent

Review

BrightonUnits 1-4, The AbacusLong Leasehold, terrace of four retail units over ground and basement totalling 30,882 sq ft.

Various £480,600 07/11/2023

Carmarthen15-23 Red Street & Units 1-4, 15 John StreetLeasehold, parade of nine retail units constructed in the 1970s. Predominantly arranged over ground and two upper floors. Property totals 39,465 sq ft.

Various £320,900 30/01/2021

Cheltenham108-110 The PromenadeFreehold, Grade II listed semi-detached two storey building with mezzanine and attic floors. Two retail units over ground and mezzanine floors, with ancillary accommodation to the remaining ground and upper floor areas. Property totals 8,963 sq ft.

JoulesVinegar Hill

£155,000£165,000

N/A N/A

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Retail (continued)

IpswichTavern Street

Over £5 million in Value



PrincipalTenants


Next RentReview

Nottingham1–8 Exchange Walk & 5–7 St Peters GateFreehold, parade of six retail units plus one retail unit on St Peters Gate. Each unit is generally over ground and first floors with two units having basements. Property totals 4,676 sq ft.

Various £524,750 03/12/2022



(1.87) Total Market



per annumNext Rent

Review

Ipswich 18/20/22 Tavern Street & 13-15/17/18-19 ButtermarketFreehold unbroken block of six retail units, three fronting Tavern Street and three fronting Buttermarket.Property totals 43,762 sq ft.

Various £480,000 03/01/2021

11





PrincipalTenants


Next RentReview

Reading 51 Broad Street & 2-6 Union StreetFreehold, the property is dominated by 51 Broad Street but also includes 3 small retail units on Union Street.51 Broad Street (including 2-3 Union Street) trades on the ground and first floor, with ancillary staff and storage on the second floor. Property totals 18,648 sq ft.

Various £371,501 21/07/2021

Reading 52/53 Broad StreetFreehold, the property is split into 3 retail units, 2 front onto Broad Street and 1 onto Friar Street at the rear. Property totals 30,963 sq ft (14,882 sq ft ITZA).

JD Sports Fashion PlcSam 99p Ltd

£0£75,000

17/08/202521/08/2024

Reading 54-60 Broad Street & 109-117 Friar StreetFreehold former department store, split into six retail units, over basement, ground and two upper floors.

Various £1,243,150 25/03/2028


Retail (continued)

Reading52/53 Broad Street

Reading51 Broad Street

Reading109-117 Friar Street

Reading54-60 Broad Street

12


PrestonUnits 1&2, Mariners Way


Retail Warehouse



(1.07) Total Market



per annumNext Rent

Review

DarlingtonHaughton Road Retail ParkTwo freehold detached retail warehouse units, constructed in 1994. Externally there are 145 parking spaces. Property totals 37,994 sq ft.

Wickes Building Supplies Ltd £169,013 24/12/2022

LlandudnoB&QLeasehold single detached retail warehouse unit. Property totals 38,991 sq ft.

B&Q Plc £431,539 N/A

NuneatonNewtown RoadFreehold retail warehouse, built in the late 1980s. Externally there is parking for 68 cars. Property totals 13,157 sq ft.

Halfords Ltd £197,085 N/A

Preston1&2 Mariners WayLeasehold terrace of two retail warehouse units, constructed in 1997. Externally there are 60 car parking spaces. Property totals 15,023 sq ft.

Pets at Home LtdHalfords Ltd

£154,220£153,750

N/AN/A

WellingboroughVictoria Retail ParkFreehold, L–shaped detached single storey purpose built retail warehouse. Property totals 9,169 sq ft.


13



Retail Warehouse (continued)



(0.96)Total MarketValue £11.5m

PrincipalTenants


Next RentReview

CoventryMatalan Wheler RoadLeasehold. Two bay retail warehouse built in 1986. Ground floor sales with tenant fitted mezzanine used for storage. Property totals 36,323 sq ft with 203 car parking spaces.

Matalan Retail Ltd £545,850 21/12/2020

HolyheadHolyhead Retail ParkFreehold retail warehouse park, built in 2005. The park is configured as a retail terrace of five units with a stand-alone Wilkinsons store and a fast food unit. Externally, there are 206 parking spaces. Property totals 62,750 sq ft.

Various £577,475 25/03/2021

RochdaleSt Mary’s GateFreehold retail warehouse, constructed in late 1980s. The property is currently split into two units. Externally there are 262 parking spaces. Property totals 46,509 sq ft.

Dunelm LtdCarpetright Ltd

£314,000£64,500

18/10/2021N/A



(1.07) Total Market



per annumNext Rent

Review

Winnersh612 Reading Road Freehold modern retail warehouse with mezzanine sales and storage area installed by the tenant. Externally there are 34 parking spaces. Property totals 7,357 sq ft.


Wrexham36 Mount StreetFreehold retail warehouse, built in the early 1990s totalling 14,955 sq ft. A mezzanine sales and storage area has been installed by the tenant. There are 75 car spaces.


14


StevenageStevenage Retail Park

Reading Retail Park


Retail Warehouse (continued)




PrincipalTenants


Next RentReview

CardiffCity Link Retail ParkFreehold retail warehouse park providing twelve units totalling 118,623 sq ft., with 469 car parking spaces.

Various £1,181,622 17/10/2021

EveshamFour Pools Retail ParkFreehold purpose built retail warehouse park of four units and a restaurant unit. The property totals 75,646 sq ft. with 215 car parking spaces.

Various £922,991 12/09/2022

FarehamCollingwood Retail ParkFreehold purpose built retail warehouse park of four units and a restaurant ‘pod’ totalling 76,520 sq ft. with 372 car parking spaces.

Various £882,106 29/01/2021

ReadingReading Retail ParkFreehold retail warehouse park of eight units totalling 118,352 sq ft with 430 car parking spaces.

Various £2,126,766 16/01/2024

StevenageStevenage Retail ParkFreehold, seven single storey retail warehouse units. Total of 241 car parking spaces. Property totals 56,175 sq ft.

Various £791,866 26/11/2020

TauntonSt John’s Retail ParkFreehold, two purpose built retail warehouse units constructed in 2001. Arranged over ground floor and mezzanine level. 199 car parking spaces. 40,184 sq ft.

DFS Furniture Company LtdGo Outdoors Ltd

£275,000£262,753

03/12/2021N/A

15



Offices




PrincipalTenants


Next RentReview

Bristol 715 Aztec WestFreehold two storey modern office building on an established business park totalling 17,631 sq ft.

Imagination Technologies LtdAntillion Ltd

£276,837£55,188

11/01/202109/11/2021

Fareham Eagle Point, SegensworthLeasehold, detached three storey office building built in 2004. Externally there are 109 parking spaces. Property totals 29,570 sq ft.

Various £180,800 20/05/2025

NottinghamJohn Webster HouseFreehold office building constructed in 2005. Externally there are 60 parking spaces. Property totals 15,187 sq ft.

Centres for Assisted Reproduction Ltd

£240,867 16/12/2025

16



Offices (continued)




PrincipalTenants


Next RentReview

Birmingham1320 Solihull Parkway, Birmingham Business ParkFreehold, detached office building arranged over two storeys. There are 125 parking spaces. Property totals 26,374 sq ft.

Various £427,642 30/06/2022

BristolUnit H1, Harlequin Office ParkFreehold, detached three storey office building. Constructed in 2009. Property totals 26,871 sq ft. There are 122 car parking spaces.

ALD Automotive Ltd £567,693 N/A

BrentwoodCountryside HouseFreehold, detached office building arranged on ground and two upper floors. There are 178 parking spaces externally and at basement level. Property totals 36,564 sq ft.

Countryside Properties (UK) Ltd

£735,720 N/A

BrentwoodAcademy Place, Brook StreetFreehold, detached modern office building over ground and two upper floors totalling 46,006 sq ft with 182 car parking spaces.

Various £678,570 03/10/2021

BrentwoodAcademy Place, Brook Street

17



Offices (continued)




PrincipalTenants


Next RentReview

BristolPrudential Buildings, Wine StreetLeasehold city centre office block over basement, ground and six upper floors. The property totals 60,394 sq ft. with 24 car parking spaces.

Various £1,493,674 02/03/2022

Bristol1300 Parkway NorthFreehold, detached three-storey HQ style building. The property totals 30,175 sq ft with 140 car parking spaces.

The Secretary of State for Defence

£0 25/01/2021

ChelmsfordOne Legg StreetFreehold, an office building constructed in 1991 that incorporates a grade 2 listed building – King William House. Accommodation is arranged over basement and five upper floors and four floors respectively. Property totals 75,404 sq ft.

Various £128,080 21/01/2023

BristolPrudential Buildings, Wine Street

18



Offices (continued)




PrincipalTenants


Next RentReview

Crawley1 Forest GateFreehold, detached office building constructed in 1993. Arranged over ground and two upper floors. There is external car parking totalling 126 spaces. Property totals 25,127 sq ft.

KPMG LLP £253,562 N/A

Fareham Fusion - Buildings 1-3Freehold, business park development constructed in 1987 providing 157,036 sq. ft of grade A refurbished office accommodation across three buildings together with surface car parking at a ratio of 1:194 sq ft.

Various £2,427,295 22/10/2021

GuildfordHays HouseFreehold detached modern office building over ground and two upper floors. The property totals 18,466 sq ft. with 21 car parking spaces.

Various £564,604 30/08/2021

Crawley1 Forest Gate

Fusion Solent Business Park

GuildfordHays House

19



Offices (continued)




PrincipalTenants


Next RentReview

Hemel HempsteadHemel One Freehold, detached office building arranged over ground and three upper floors constructed in the 1980s. There are 434 car parking spaces externally. Property totals 93,717 sq ft.

Various £687,750 09/01/2021

Heston The Square Freehold, office campus of three two storey office buildings and car parking totalling 69,522 sq ft.

Various £677,168 26/05/2022

Langley The CurveFreehold detached modern office building totalling 41,228 sq ft with car parking.

Various £667,356 04/03/2021

Luton400, 450, 475 Capability GreenFreehold office campus of three detached buildings arranged around a central courtyard. The property totals 91,367 sq ft. with a total of 492 car parking spaces.

Various £1,054,963 08/04/2021

The Curve Langley

20



Offices (continued)




PrincipalTenants


Next RentReview

QuintonBuildings 4,7,8 & 9, Quinton Business ParkLong leasehold, four modern business park office buildings built in the mid 2000’s. Buildings 4 and 9 are three storey and buildings 7 and 8 are two storey. Property totals 77,451 sq ft, together with 380 external surface parking spaces.

Various £934,619 18/10/2021

SolihullBirmingham International Park Freehold, three detached Grade A office buildings arranged over three storeys. The property totals 71,661 sq ft.

Various £1,446,113 29/11/2020

WatfordThe Belfry Business ParkFreehold. Five purpose-built 1980s office buildings arranged around central landscaped courtyard. Property totals 66,294 sq ft with 198 car parking spaces.

Various £768,936 02/02/2023

WorcesterOne Kings CourtFreehold, standalone three storey modern office building in out of town location. Property totals 31,504 sq ft with 80 car parking spaces.

Various £483,849 30/11/2022

Belfry Business Park Watford

Supermarket




PrincipalTenants


Next RentReview

BoscombeThe Former Superstore, Sovereign CentreFreehold. Former Safeway supermarket located in The Sovereign Centre. Divided into two sublet retail units. Ground and first floor levels. Totals 50,235 sq ft.

Safeway Stores Ltd £454,500 N/A

21



Industrial




PrincipalTenants


Next RentReview

BirminghamEuropa House, Tilton RoadFreehold, late 1980s distribution warehouse building with a good sized yard. Property totals 34,281 sq ft.

LTS Distribution Ltd £162,300 N/A

Chippenham Wessex Business CentreLeasehold, a purpose-built warehouse unit with associated offices constructed in the mid 1970’s. The property totals 15,678 sq ft.

Royal Mail Group Ltd £112,500 06/08/2023

JarrowViking Industrial ParkFreehold. Two detached industrial units, constructed in 2002. Property totals 38,117 sq ft.

UTS Engineering LtdLibra Seafood Processing Ltd

Northern Electric plc

£97,000£68,900

£0

N/AN/A

23/02/2024

Newcastle Upon TyneWhitehouse Road EstateLeasehold. Seven units providing industrial/warehouse accommodation. Property totals 31,240 sq ft.

Various £114,044 N/A

SheffieldPresident Park, Unit B, Savile Street EastFreehold, a detached modern industrial unit with integral two storey offices. Property totals 24,324 sq ft.

Alton Cars LtdNorthern Powergrid (Yorkshire) Plc

£140,000£0

N/AN/A

StanleyTanfield Lea North EstateFreehold, purpose built production facility with ancillary and office space. Property totals 58,197 sq ft after significant extension.

KP Snacks Ltd £95,000 22/04/2021

StevenageUnit 11, Babbage RoadFreehold. standalone single storey warehouse with adjoining brick built office building. External yard with customer parking area. Property totals 17,023 sq ft.

CCF Ltd £131,000 23/02/2021

SunderlandPennywell Industrial EstateFreehold. The property comprises ten originally constructed units, which have subsequently been modified to provide five self-contained units. Property totals 45,775 sq ft.

Various £146,423 19/06/2023

SunderlandSouthwick Industrial Estate Freehold, comprising ten industrial/warehouse units with ancillary, office and storage facilities, totalling 32,079 sq ft.

Various £132,170 03/02/2021

TewkesburyUnit 11 Shannon Way, Tewkesbury Business ParkFreehold, detached 1980’s portal frame warehouse with office accommodation to the front. Property totals 18,030 sq ft.

Vacant £0 N/A

Less than £1 million in Value



Principal Tenants

Rental Income per annum

Next Rent Review

StowmarketDevelopment Site D, Gipping WayFreehold development site extending to approximately 1.54 acres.

Development Site D £0 N/A

22



Industrial (continued)

BournemouthUnit 1-26 Elliott Road




PrincipalTenants


Next RentReview

Ashford SIG Trading Limited, Brunswick RoadFreehold. The property comprises a detached self-contained two bay warehouse with ancillary office accommodation constructed in the 1980’s. Property totals 18,030 sq ft.

SIG Trading Ltd £222,000 30/06/2021

Barnard CastleHarmire Enterprise ParkFreehold, multi-let industrial estate, providing 29 office and industrial/warehouse units, 11 of which have been sold on long leases. The remaining units total 40,626 sq ft.

Various £215,526 03/04/2021

BasildonMSX International HouseFreehold, vacant. The property provides office and warehouse accommodation totalling 34,874 sq ft.

Vacant £0 N/A

BournemouthUnit 1-26 Elliott RoadFreehold, 26 unit industrial estate arranged in four terraces. Property totals 30,457 sq ft. 4 of the units are currently undergoing refurbishment.

Various £180,700 06/04/2021

ChesterCalders Phase IILong leasehold, two modern industrial warehouse units with yard and car parking areas totalling 40,275 sq ft.

Calder Industrial Materials LtdHarlech Foodservice Limited

£157,400£50,000

N/AN/A

ChristchurchUnits 1-10 AirfieldFreehold, ten industrial units constructed in mid-1980s. Each unit has small office block and a tarmacadam forecourt. Property totals 46,463 sq ft.

Various £287,945 08/04/2021

Coventry Pilot Trade Centre, Pilot CloseFreehold. 14 warehouse/trade counter units arranged in four terraces. Property totals 31,379 sq ft.

Various £310,000 04/08/2021

Crowborough April Court Sybron WayFH, 1980s built industrial complex comprising 16 units with a total floor area of 31,410 sq ft. Generally configured with ground floor industrial/trade counter space and office accommodation at first floor level.

Various £180,056 04/12/2022

23




EllandLowfields Business Park




Principal Tenants


Next Rent Review

EllandLowfields Business ParkFreehold. Detached warehouse unit with ancillary two storey office accommodation to the front. Property totals 40,311 sq ft.

Various £242,500 06/04/2021

GloucesterKohler Mira Warehouse, 40 Barnett Way, BarnwoodFreehold. Detached warehouse unit with integral two storey office accommodation. Constructed in 1982. Property totals 52,916 sq ft.

Kohler Mira Ltd £300,000 17/04/2021

Kenley265 Godstone RoadFreehold, detached self-contained trade counter warehouse constructed in 1993 with gated access directly off the A22. The building totals18,942 sq ft.

Saint-Gobain Building Distribution

South Eastern Power Networks

£181,944

£0

03/08/2023

31/08/2023

KnottingleyA1 Business Park, Unit A1Freehold, a detached industrial/warehouse unit with integral single storey office and kitchen/staff facilities. Constructed in 1997. Property totals 53,077 sq ft.

Joule Hot Water Systems UK Ltd

£260,000 25/09/2021

NorwichLink 47, Longwater Business ParkFreehold. Three modern trade-counter/warehouse units totalling 41,240 sq ft together with 1 acre of storage land.

Various £336,000 02/02/2021

North ShieldsWest Chirton Industrial EstateFreehold, six detached and three terraced industrial units constructed in the 1980s. Mixture of dedicated and shared service and car parking areas. Property totals 110,619 sq ft.

Various £368,119 01/08/2022

North TynesideNew York Industrial Estate Freehold, multi-let industrial estate, providing 20 industrial/distribution warehouse units. 12 have been sold on long leases. The remaining units total 81,334 sq ft.

Various £172,250 26/11/2020

24







Principal Tenants


Next Rent Review

RochesterTrident Close, Medway City EstateFreehold, detached stand alone industrial unit with offices to the first floor. Property totals 45,069 sq ft.

Key Promotions (UK) Ltd £250,000 N/A

SouthamptonUnits 29 & 30 Solent Industrial EstateFreehold, the property comprises two 1970s built industrial units on a broadly rectangular site, extending to 1.85 acres with a site coverage of 47%. Property totals 39,303 sq ft.

Travis Perkins (Properties) Ltd £247,500 N/A

SpaldingJewson Depot, Platts CloseFreehold, the property comprises a purpose-built builder’s yard with a detached steel portal frame industrial unit and a large secure yard Property totals 17,945 sq ft.

Saint-Gobain Building Distribution

£179,136 03/08/2023

StroudUnits 10-15 Stonehouse IEFreehold, a terrace of six industrial units. Varying in size, each has ancillary office accommodation and parking to the front. Property totals 39,041 sq ft.

Various £235,709 01/11/2021

SunderlandWest Quay CourtFreehold industrial estate, comprising a well specified production facility/distribution warehouse. Eight units totalling 124,450 sq ft.

Various £496,107 26/11/2021

SwindonCheney Manor Industrial EstateFreehold, seven modern industrial units arranged in two terraces and a standalone unit. Property totals 38,773 sq ft. Each unit has 8 car parking spaces to the front.

Various £220,183 24/02/2021

ThornburyUnits 17-30 Thornbury IELong leasehold, 14 industrial units of varying age located throughout Thornbury Industrial Estate. Property totals 57,546 sq ft.

Various £335,438 24/12/2021

WaterloovilleBrambles House, Waterberry DriveLeasehold, detached industrial warehouse building constructed in 1992 totalling 55,154 sq ft.

Stan Chem International Ltd £317,150 16/06/2021

WellingboroughUnits D-F, Whittle CloseLeasehold. Three detached industrial warehouse units, all with two storey offices. The property totals 58,940 sq ft. Externally there are 58 car parking spaces.

Various £249,067 23/05/2021

25






(17.92) Total MarketValue £181m

Principal Tenants


Next Rent Review

BasildonBakers Court Industrial EstateFreehold, multi-let industrial/trade counter estate of 22 units totalling 68,260 sq ft.

Various £363,850 27/04/2022

BasildonWollaston Industrial EstateFreehold, large multi-let industrial estate, various unit sizes and types. Let on a mixture of leaseholds and long leaseholds. Property totals 176,727 sq ft.

Various £439,400 21/04/2022

BromsgroveAston Fields Trading EstateLong leasehold, 20 industrial units arranged in two terraces constructed in the 1980s. Property totals 59,621 sq ft.

Various £361,230 20/11/2021

CanterburyUnits 1-8 Wincheap Trade ParkLeasehold Trade Park, comprising nine units, built during the 1970s. Property totals 69,893 sq ft.

Various £436,674 01/09/2021

CardiffThe LevelsLeasehold modern industrial estate of 26 warehouse units totalling 81,438 sq ft. across five blocks.

Various £366,055 01/01/2021

Coventry Siskin Parkway EastLeasehold, two adjoining warehouse units occupied as one totalling 83,051 sq ft.

Gefco UK Ltd £470,000 N/A

CramlingtonSouth Nelson Industrial EstateFreehold. 44 units, consisting of industrial/distribution warehouse accommodation. One unit has been sold on a long lease. Property totals 184,233 sq ft.

Various £835,734 24/12/2020

CreweBrightstar 20:20, Duchy RoadFreehold, a warehouse constructed in 1996 and extended in 2002. Property totals 114,863 sq ft.

Brightstar 20:20 Ltd £642,935 01/01/2024

EastleighAvalon, Parham DriveFreehold, a purpose built high bay warehouse dating to 1970/1980’s with additional production and dispatch areas with lower eaves. Property totals 110,570 sq ft.

Southern Electric Power Distribution

£1 N/A

BromsgroveAston Fields Trading Estate

26







Principal Tenants


Next Rent Review

HarlowUnits 1 & 2, Temple House Freehold, two detached industrial warehouse units constructed in the early 1970s. Property total 177,696 sq ft.

Clarins UK Distribution LtdMorplan Ltd

£754,000£250,000

17/03/2023N/A

MiddletonPlot C Touchet Hall RoadFreehold. Purpose built warehouse unit constructed in 1991 with car parking to the front and loading yard at the rear. Property totals 64,265 sq ft.

Booker Ltd £305,950 14/10/2021

Milton KeynesGranby Industrial and Trade ParkFreehold multi-let industrial estate of 24 units totalling 147,374. Various £656,603 20/03/2021

PooleNursery Scheme 1& 2 and storage landFreehold, 28 industrial units split into two phases and 6 terraces. Phase 1 was constructed in 1970s and Phase 2 in 1980s. Total floor area of 101,768 sq ft. Property includes storage land adjacent to Nursery scheme 2 with an area of 1 acre.

Various £640,595 14/05/2021

PooleD’Oriel House Halton RoadFreehold, large detached mid-1980s built warehouse unit with integral two storey offices to the front. Property totals 76,413 sq ft.

Tower Supplies Ltd £0 28/05/2025

RoystonBruel & Kjaer, Jarman WayFreehold, purpose built industrial warehouse unit constructed in 2008 with ancillary office arranged over three floors. Property totals 57,330 sq ft.

Bruel & Kjaer VTS Ltd £473,648 N/A

StowmarketBosch Facility & development sites A,B,C, Gipping WayFreehold, a production, research and testing warehouse plus adjoining office and development sites. Property totals 192,003 sq ft.

Bosch Lawn & Garden Ltd £615,000 01/01/2024

SunderlandBoldon Business ParkFreehold. Comprising 28 units, of which 15 are sold on long leases. The remaining units comprise industrial/distribution warehouse accommodation totalling 139,494 sq ft.

Various £627,998 10/01/2021

PooleD’Oriel House Halton Road

27


SwindonAmazon, Unit 7, South Marston






Principal Tenants


Next Rent Review

SwindonAmazon, Unit 7, South MarstonLeasehold detached industrial warehouse unit totalling 209,239 sq ft. with surface yard and car parking areas.

Amazon UK Services Limited £977,507 02/05/2022

ThornburyThe Hemingway Business CentreLeasehold, 15 light industrial units arranged in three terraces, constructed in the early 1970s. Primarily provide ground floor warehouse accommodation with ancillary office blocks. Property totals 68,672 sq ft.

Various £240,085 21/06/2021

WiganSouth Lancs Industrial EstateFreehold, two non-contiguous industrial units, with Unit 2 and a development site located at the south-eastern end of Lockett Road with Unit 7 located where it re-joins Bryn Road to the north. Property totals 239,429 sq ft.

Chemviron Carbon LtdEssity UK Ltd

Development Plot

£124,000£0£0

N/A31/10/2021

N/A

WinsfordOne 100 Road OneFreehold, standalone industrial unit with yard and car parking spaces to the front. Constructed in 1977 the unit has 2 x two storey integral block built offices. Property totals 103,586 sq ft.

Howard Tenens (Winsford) Ltd £380,971 N/A

WiganSouth Lancs Industrial Estate

28





PrincipalTenants


Next RentReview

BrightonThe Boardwalk RestaurantsLong leasehold, The Boardwalk development comprises a modern mixed-use leisure scheme of 7 restaurant units totalling 26,850 sq ft (2,494 sq m) and 8 upper floors comprising 195 residential units across two towers. The residential units have been separately sold off.

Various £380,125 01/04/2021


Leisure




Principal Tenants


Next Rent Review

BradfordGallagher Leisure Park, Dick LaneFreehold, a modern, refurbished mixed use leisure scheme comprising an Odeon cinema, a gym, KFC and Costa Drive-Thru. Property totals 79,783 sq ft with 758 car parking spaces.

Various £1,209,239 29/09/2021

SouthportOcean Plaza, Marine ParadeFreehold, large retail and leisure park on the edge of Southport town centre. The retail element comprises a terrace of five units, a detached retail warehouse unit and two restaurants. The leisure element comprises a single detached unit which has been divided to provide a gym, a seven screen cinema, bowling alley and a further eight restaurant and leisure units. The Premier Inn on the site has been sold off on a long lease.

Various £2,477,786 24/05/2021

29



Retail/Residential

HarpendenHarpenden Estate



(1.65) Total Market



per annumNext Rent

Review

HarpendenHarpenden EstateFreehold, mixed use island site extending to approximately 1.142 acres. The property comprises of 29 retail units and four main blocks of residential units together with some office accommodation.

Various £1,185,890 Various

30





Principal Tenants


Next Rent Review

BuryStratstone Land RoverFreehold, purpose built car showroom with workshop, car preparation and car display areas, totalling 16,854 sq ft.

Christian Property UK Ltd £197,077 N/A

DoncasterStratstone Land RoverFreehold, purpose built car showroom with workshop, car preparation and car display areas, totalling 16,960 sq ft.

Pendragon Property Holdings Ltd

£208,669 N/A

StourbridgeStratstone JaguarFreehold, purpose built car showroom with workshop, car preparation and car display areas, totalling 13,800 sq ft.

Cathedral Motor Company Limited

£144,960 N/A

StourbridgeVolvo Car UK Freehold purpose built car showroom/dealership totalling 6,978 sq ft. over two floors. Externally there are 50 car parking spaces including display space.

Volvo Car UK Ltd £99,275 N/A


Car Showroom

StourbridgeStratstone Jaguar

DoncasterStratstone Land Rover

BuryStratstone Land Rover

31




(4.70)Total Market



per annumNext Rent

Review

BraintreeGeorge Yard Shopping CentreFreehold town centre open shopping centre of 33 retail units and 3 office suites.

Various £1,105,777 Various

BrentwoodBaytree CentrePredominantly FH shopping centre of 35 units totalling 132,547 sq ft.

Various £620,406 Various

TonbridgePavillion Shopping CentreFreehold, 18 unit shopping centre at ground floor level, with an additional mezzanine level. 8 units on the High-Street pitch and 10 units within the mall. Total property area 68,784 sq ft, including mezzanine level 79,667 sq ft.

Various £690,250 01/07/2021

UrmstonEden Square Shopping CentreLeasehold, shopping centre development constructed between 2009 and 2012 anchored by Sainsbury’s. 20 retail units along with 76 upper-floor apartments sold off long-leasehold. Property totals 68,205 sq ft.

Various £962,129 Various


Shopping Centres

Baytree Centre BrentwoodGeorge Yard Braintree

UrmstonTonbridge

Financial Statements

32


STATEMENT OF TOTAL RETURNfor the accounting period 16 May 2020 to 15 November 2020

2020 2019£000 £000

IncomeNet capital losses (25,232) (37,938)Revenue 32,795 49,890

Expenses (12,612) (14,980)Net revenue before taxation 20,183 34,910Taxation – –

Net revenue after taxation 20,183 34,910Total return (5,049) (3,028)Distributions (21,204) (36,190)Change in net assets attributable to shareholders from investment activities (26,253) (39,218)

STATEMENT OF CHANGE IN NET ASSETS ATTRIBUTABLE TO SHAREHOLDERSfor the accounting period 16 May 2020 to 15 November 2020

2020 2019£000 £000

Opening net assets attributable to shareholders 1,032,843 1,486,195Amounts receivable on the issue of shares 35,622 134,714Amounts payable on cancellation of shares (212,626) (452,476)

(177,004) (317,762)Dilution adjustment 4,623 13,551Change in net assets attributable to shareholders from investment activities (see statement of total return above) (26,253) (39,218)Retained distribution on accumulation shares 17,761 30,025Closing net assets attributable to shareholders 851,970 1,172,791

The comparatives used within the Statement of Change in Net Assets Attributable to Shareholders are for the corresponding period of the previous year. Therefore the opening net assets attributable to unitholders for the current year are at 15 May 2020 whilst the figure disclosed in the comparatives’ closing net assets attributable to shareholders is at 15 November 2019.

BALANCE SHEETas at 15 November 2020

2020May 2020

£000 £000Assets:Fixed assets:Tangible assets:

Land & buildings 794,766 848,601794,766 848,601

Current assets: Debtors 22,118 13,567Cash and bank balances 52,340 98,213Cash equivalents 18,354 94,298

Total assets 887,578 1,054,679Liabilities: Creditors:

Bank overdrafts (520) –Other creditors (33,892) (20,233)Distribution payable (1,196) (1,603)

Total liabilities (35,608) (21,836)Net assets attributable to shareholders 851,970 1,032,843

CASH FLOW STATEMENTfor the accounting period 16 May 2020 to 15 November 2020

2020 2019£000 £000

Cash flows from operating activitiesOperating profit for the financial year 20,183 34,910

(Increase)/decrease in debtors (6,382) 1,158Increase in creditors 7,561 1,063Cash from operations 21,362 37,131

Taxation (434) (561)Net cash inflows from operating activities 20,928 36,570

Cash flows from investing activitiesCapital Expenditure (3,049) (4,941)Payments to acquire investments (56) (53,189)Receipts from the sale of land and buildings 26,162 181,159Receipts from the sale of investments 76,000 75,000Net cash from investing activities 99,057 198,029

Cash flows from financing activitiesDistributions paid (2,176) (3,041)Amounts received on issue of shares 38,370 146,481Amounts paid on cancellation of shares (202,572) (452,769)Net cash used in financing activities (166,378) (309,329)

Net decrease in cash and cash equivalents (46,393) (74,730)

DISTRIBUTION TABLEfor the accounting period 16 May 2020 to 15 November 2020

Distribution in pence per shareClass 1 – Income sharesDistribution Period

Gross Revenue

Income Tax

Net Revenue Equalisation

Distribution Paid/Payable

2020/2021

Prior year Paid

2019/2020Group 116/05/20 to 15/08/20 0.6449 0.0705 0.5744 – 0.5744 0.750916/08/20 to 15/11/20 0.6598 0.0742 0.5856 – 0.5856 0.8383Group 2 16/05/20 to 15/08/20 0.6449 0.0704 0.5744 – 0.5744 0.750916/08/20 to 15/11/20 0.1850 0.0208 0.1642 0.4214 0.5856 0.8383Total distributions in the period 1.1600 1.5892

Class 1 – Accumulation sharesDistribution Period

Gross Revenue

Income Tax


Net Revenue Accumulated

2020/2021

Prior year Accumulated

2019/2020Group 1 16/05/20 to 15/08/20 1.1384 0.1244 1.0140 – 1.0140 1.267316/08/20 to 15/11/20 1.1716 0.1283 1.0433 – 1.0433 1.4299Group 2 16/05/20 to 15/08/20 1.1384 0.1244 1.0140 – 1.0140 1.267316/08/20 to 15/11/20 0.2339 0.0256 0.2083 0.8350 1.0433 1.4299Total distributions in the period 2.0573 2.6972

Class 1 – Gross income sharesDistribution Period

Gross Revenue

NetRevenue Equalisation


2020/2021

Prior year Paid

2019/2020Group 1 16/05/20 to 15/08/20 0.6452 – 0.6452 – 0.6452 0.859916/08/20 to 15/11/20 0.6578 – 0.6578 – 0.6578 0.9687Group 2 16/05/20 to 15/08/20 0.6452 – 0.6452 – 0.6452 0.859916/08/20 to 15/11/20 0.1399 – 0.1399 0.5179 0.6578 0.9687Total distributions in the period 1.3030 1.8286

Class 1 – Gross accumulation sharesDistribution Period

Gross Revenue



2020/2021



Class 2 – Income sharesDistribution Period

Gross Revenue

Income Tax



2020/2021

Prior year Paid


Financial Statements(continued)

33


Class 2 – Accumulation sharesDistribution Period

Gross Revenue

Income Tax



2020/2021



Class 2 – Gross income sharesDistribution Period

Gross Revenue



2020/2021

Prior year Paid


Class 2 – Gross accumulation sharesDistribution Period

Gross Revenue



2020/2021



Class F – Gross accumulation sharesDistribution Period

Gross Revenue



2020/2021



34


Comparative Table Disclosure

Class 1 – Income shares Class 1 – Accumulation shares15/11/2020 15/05/2020 15/05/2019 15/11/2019 15/05/2019 15/05/2018

Change in net assets per shareOpening net asset value per share (p) 63.02 69.75 71.89 111.25 117.71 116.12

Return before operating charges and property expenses (p) 0.53 (1.44) 3.23 0.94 (2.58) 5.27 Operating charges (p)** (0.51) (1.11) (1.17) (0.90) (1.91) (1.90)Property expenses (p)*** (0.47) (0.71) (0.64) (0.84) (1.22) (1.05)

Return after operating charges and property expenses (p)* (0.45) (3.27) 1.42 (0.80) (5.71) 2.32

Distributions (p) (1.30) (3.46) (3.56) (2.31) (5.94) (5.85)Retained distribution on accumulation shares (p)# – – – 2.06 5.19 5.12

Closing net asset value per share (p) 61.27 63.02 69.75 110.20 111.25 117.71

*after direct transaction costs (p) 0.02 0.23 0.26 0.04 0.39 0.42

PerformanceReturn after charges (%) (0.71) (4.68) 1.98 (0.72) (4.85) 2.00

Other informationClosing net asset value (£'000) 716 863 1,300 12,700 13,924 18,413 Closing number of shares 1,168,332 1,368,439 1,864,140 11,524,678 12,515,957 15,641,907 Operating charges (%)** 1.63 1.62 1.63 1.63 1.62 1.62 Property expenses (%)*** 1.50 1.04 0.90 1.50 1.04 0.90 Direct transaction costs (%)**** 0.07 0.33 0.36 0.07 0.33 0.36

PricesHighest share price (p) 63.05 70.12 72.54 111.30 118.34 118.09 Lowest share price (p) 61.73 68.55 70.35 109.98 116.94 116.13

Class 1 – Gross income shares Class 1 – Gross accumulation shares15/11/2020 15/05/2020 15/05/2019 15/11/2020 15/05/2020 15/05/2019








Other informationClosing net asset value (£'000) 94 110 226 39,231 40,263 45,541 Closing number of shares 152,982 173,788 324,403 34,615,897 35,270,699 37,943,734 Operating charges (%)** 1.63 1.62 1.62 1.63 1.62 1.62 Property expenses (%)*** 1.50 1.04 0.90 1.50 1.04 0.90 Direct transaction costs (%)**** 0.07 0.33 0.36 0.07 0.33 0.36



35


Class 2 – Income shares Class 2 – Accumulation shares15/11/2020 15/05/2020 15/05/2019 15/11/2020 15/05/2020 15/05/2019








Other informationClosing net asset value (£'000) 72,061 78,137 94,231 12,406 19,740 29,683 Closing number of shares 101,638,320 107,547,351 118,074,900 10,006,603 15,821,707 22,633,732 Operating charges (%)** 0.81 0.80 0.80 0.81 0.80 0.80 Property expenses (%)*** 1.50 1.04 0.90 1.50 1.04 0.90 Direct transaction costs (%)**** 0.07 0.33 0.36 0.07 0.33 0.36


Class 2 – Gross income shares Class 2 – Gross accumulation shares15/11/2020 15/05/2020 15/05/2019 15/11/2020 15/05/2020 15/05/2019








Other informationClosing net asset value (£'000) 17,994 28,941 41,076 17,960 48,549 58,315 Closing number of shares 25,385,340 39,843,756 51,475,768 13,977,524 37,663,429 43,384,982 Operating charges (%)** 0.81 0.80 0.80 0.81 0.80 0.80 Property expenses (%)*** 1.50 1.04 0.90 1.50 1.04 0.90 Direct transaction costs (%)**** 0.07 0.33 0.36 0.07 0.33 0.36


Comparative Table Disclosure(continued)


36


Class F – Gross accumulation shares15/11/2020 15/05/2020 15/05/2019

Change in net assets per shareOpening net asset value per share (p) 553.91 573.08 552.88

Return before operating charges and property expenses (p) 4.66 (13.09) 25.32 Operating charges (p)** (0.05) (0.06) (0.06)Property expenses (p)*** (4.18) (6.02) (5.06)

Return after operating charges and property expenses (p)* 0.43 (19.17) 20.20

Distributions (p) (11.80) (29.88) (28.78)Retained distribution on accumulation shares (p)# 11.80 29.88 28.78

Closing net asset value per share (p) 554.34 553.91 573.08

*after direct transaction costs (p) 0.19 1.90 2.02

PerformanceReturn after charges (%) 0.08 (3.35) 3.65

Other informationClosing net asset value (£'000) 678,808 802,316 1,197,410 Closing number of shares 122,452,402 144,844,904 208,941,988 Operating charges (%)** 0.02 0.01 0.01 Property expenses (%)*** 1.50 1.04 0.90 Direct transaction costs (%)**** 0.07 0.33 0.36

PricesHighest share price (p) 557.30 580.79 573.27 Lowest share price (p) 551.36 573.16 552.95

Comparative Table Disclosure(continued)


#Any difference between the distributions and the retained distributions on accumulation shares is due to tax withheld.** The Operating charges are represented by the Ongoing Charges Figures (OCF) which is the European standard method of disclosing the charges of a share class of a fund based

on the financial period’s expenses and may vary from year to year. It includes charges such as the fund’s annual management charge, registration fee, custody fees and distribution cost but ordinarily excludes the costs of buying or selling assets for the fund (unless these assets are shares of another fund). Where published, the Key Investor Information Document (KIID) contains the current OCF. For a more detailed breakdown please visit columbiathreadneedle.com/fees.

***The Property Expenses are represented by the Property Expense Ratio (PER) and reflects any additional costs associated with the day-to-day operation of direct property assets.****Transaction costs have not been reduced by any amounts collected from dilution levies.


37


1 ACCOUNTING POLICIES(a) Basis of accounting

The financial statements have been prepared on the historical cost basis, as modified by the revaluation of investments, in compliance with FRS 102 and in accordance with the Statement of Recommended Practice for Authorised Funds (SORP) issued by the Investment Management Association in May 2014.The accounting policies applied are consistent with those of the annual financial statements for the year ended 15 May 2020 and are described in those financial statements.

(b) NotesIn accordance with the guidelines of the SORP the fund has taken advantage of the facility not to provide further notes to the financial statements.

2 RECONCILIATION OF SHARES15 November 2020

Class 1 – Income sharesOpening shares 1,368,439 Shares issued 2,076 Shares redeemed (115,167)Net conversions (87,016)

Closing shares 1,168,332

Class 1 – Accumulation sharesOpening shares 12,515,957 Shares issued 44,623 Shares redeemed (993,515)Net conversions (42,387)


Class 1 – Gross income sharesOpening shares 173,788 Shares issued 61 Shares redeemed (20,867)Net conversions –

Closing shares 152,982

Class 1 – Gross accumulation sharesOpening shares 35,270,699 Shares issued 21,164 Shares redeemed (637,678)Net conversions (38,288)


Class 2 – Income sharesOpening shares 107,547,351 Shares issued 155,941 Shares redeemed (6,182,108)Net conversions 117,136


Class 2 – Accumulation sharesOpening shares 15,821,707 Shares issued 373,483 Shares redeemed (6,278,779)Net conversions 90,192


Class 2 – Gross income sharesOpening shares 39,843,756 Shares issued 502,848 Shares redeemed (14,954,685)Net conversions (6,579)


Class 2 – Gross accumulation sharesOpening shares 37,663,429 Shares issued 299,441 Shares redeemed (23,948,819)Net conversions (36,527)


15 November 2020Class F – Gross accumulation sharesOpening shares 144,844,904 Shares issued 6,198,878 Shares redeemed (28,591,380)Net conversions –


Notes to the financial statementsfor the accounting period 16 May 2020 to 15 November 2020

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Shareholder Turnover

For the period ending 15 November 2020 Number of Shares

Net asset value of Shares as at

period end

Percentage of total net

asset value of the Fund as at start of period

Percentage of total net

asset value of the Fund as at end of period

Creations 7,840,502 35,971,964 3.48 4.22Redemptions (81,968,454) (214,153,599) (20.73) (25.14)

Shareholder Analysis

As at 15 November 2020Number of

Shareholders% of shares

in issue

Less than 1% of Shares in issue 86 5.01%1% or greater but less than 2% 3 5.05%2% or greater but less than 4% 2 4.78%4% or greater but less than 8% 2 10.99%Greater than 8% of Shares in issue 3 74.17%Grand Total 96 100.00%Total Number of Shares in Issue 320,922,079Internal Investors 27.34%External Investors 72.66%Total 100.00%

Largest Investor 38.16%

Largest 3 Investors 74.17%



§Class 1 Net income and net accumulation units commenced 19 February 2007. *Class 2 Net income and net accumulation units commenced 8 October 2007.2Shares commenced 13 May 2016.Source: Morningstar and Threadneedle. Bid to bid prices are quoted (i.e. not including any initial charge) with net income reinvested for the UK basic rate tax payer. Performance data is quoted in sterling. OEIC Benchmark for Real Estate Trusts refers to the IPD UK Monthly Index since 28 February 2007.The performance data prior to 14 May 2016 (the launch date of the Fund) relates to the Threadneedle UK Property Trust whose assets transferred to the Threadneedle Property Authorised Investment Fund on 14 May 2016.

Shares Price Performance – Bid to Bid Basis (adjusted for net revenue)

for the period

1 November 2019 to

31 October 2020

%

1 November 2018 to

31 October 2019

%

1 November 2017 to

31 October 2018

%

1 November 2016 to

31 October 2017

%

1 November 2015 to

31 October 2016

%

1 November 2014 to

31 October 2015

%

1 November 2013 to

31 October 2014

%

since launch to 31 October

2020 %

Class 1 – Net income units (5.54) (6.52) +4.74 +10.72 (5.02) +9.21 +13.06 +0.92§

Class 1 – Net accumulation units (5.54) (6.47) +4.83 +10.91 (4.83) +9.40 +13.34 +1.04§

Class 1 – Gross income units (5.00) (5.91) +5.38 +11.38 (7.19) 2 – – +0.592

Class 1 – Gross accumulation units (4.99) (5.89) +5.55 +11.63 (7.14) 2 – – +0.662

Class 2 – Net income units (4.92) (5.92) +5.45 +11.46 (4.38) +10.14 +15.26 +1.97*

Class 2 – Net accumulation units (4.95) (5.90) +5.70 +11.50 (4.19) +9.92 +15.57 +1.77*

Class 2 – Gross income units (4.22) (5.15) +6.24 +12.34 (6.85) 2 – – +1.422

Class 2 – Gross accumulation units (4.29) (5.14) +6.54 +12.39 (6.77) 2 – – +1.482

Morningstar Median Performance (4.93) (0.84) +5.44 +6.32 +3.27 +8.18 +10.69 (0.07)§

(OEIC Benchmark for Real Estate Trusts) +0.83*

+0.552

39

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THREADNEEDLE UK PROPERTY AUTHORISED INVESTMENT FUND€¦ · 03/01/2020 · property investment...

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