Prudential’s M&G pooled property fund posted a 3.1% return in the second quarter of 2003, outstripping the HSBC/APUT median return of 2.6%.
For the year to date, the M&G fund which provides pension funds with access to the UK property market posted a 5.1% return, compared with the HSBC median of 4.0%.
The fund has 80 properties and its largest tenant is the UK government. The initial yield is 7.3%, compared to the IPD monthly index for June of 6.8%.
According to Prudential, the fund has outperformed the median fund by 50 basis points pa over the 10 years to June 2003, net of costs and fees.
Meanwhile, Pillar and Capital & Regional posted unit values showing capital growth for their funds as at July 2003.
Pillar’s £1.9bn Hercules unit trust which specialises in retail parks registered a marginal 0.7% rise in net unit value over the month to £696. Its £625m City of London Office unit trust remained flat at £474 for June and July.
C&R’s £990m Mall limited partnership which focuses on shopping centres, saw an 8% unit value rise to £1.25 for the seven months to 31 July, while its £762m Junction retail park fund’s unit value grew 9.5% to £1.23 for the five-month period from its launch until the end of July.
