British Coal’s staff pension fund earned £57m net (£52m) from property in the year to April 5, 18% of its investment income.
The value of the portfolio — including a 2-acre spread between Oxford Street and Cavendish Square in London — increased from £939m to £942m. But, in relative terms, the fund has been disinvesting in property as it builds up its holdings of overseas equities. Bricks and mortar and mortgages now account for 15% of the £62bn fund, down from 16% in 1989.
During the year most of its US property holdings were sold, bringing the stateside exposure down from £130m in 1989 to £25m; the four remaining buildings are expected to go during the current year. In the UK there were £44m worth of disposals, including the Setanta Centre in Dublin and the Arndale Centre, Morecombe. Counterbalancing this was the £75m spent on acquisitions like Eden Walk, Kingston upon Thames, and Charles Square, Bracknell.
