A property investment fund set up exclusively for charities has almost £500m under management and is projected to deliver a return of 6.5 per cent over the next year.
The Charities Property Fund now has £499.1m under management and has outperformed an industry benchmark index on several indicators.
The fund produced a total return of 0.9 per cent in the second quarter of 2012, which was higher than the 0.3 per cent recorded by the Investment Property Databank’s All Balanced Funds Index.
The Charities Property Fund produced higher returns than the IPD’s index over 12 months, recording 6 per cent against the IPD’s 4 per cent.
Recent purchases by the fund include the asylum and immigration courts at Heathrow for £6.5m, which is leased to the government until June 2017, and a retail block in Bath for £7m.
The fund’s largest tenants include the retailers Tesco and John Lewis, public sector organisations and the hotel company Travelodge.
In a letter to investors, the fund’s director, Henry de Ferry Foster, said the firm had £37m to invest and planned to buy assets with returns of 8 per cent or more.