A new closed-ended investment company that tracks the FTSE All UK Property Index is to be launched.
The FTSE Group has licensed MSS Real Estate to create the FTSE UK Commercial Property Index Fund, which will be listed on the London Stock Exchange.
It will track the FTSE All UK Property Index, the headline index of the FTSE UK Commercial Property Index Series, which was launched in 2006 and reflects the daily investment performance of UK retail, office and industrial property.
The index also provides investors with a definitive daily measure of the performance of more than £60bn of investable, institutional-grade commercial property across the UK, offering a liquid and diversified alternative to direct property investment.
The comprehensive index also provides investors with 100% exposure to UK investable commercial property.
MSS chief executive Mark Ellis said: “The company is a unique and innovative proposition for institutional and retail investors seeking exchange-traded access to institutional grade, investable UK commercial property without the cash drag or gearing typically associated with real estate funds.
“The company will be managed so as to track the FTSE All UK Property Index by replicating its constituents and expects to generate returns comparable to direct investment in a diversified, balanced real estate portfolio.
“The company has also adopted sector-leading discount control features designed to prevent the company’s shares from trading at a significant discount to net asset value.”
Imogen Dillon-Hatcher, FTSE’s executive director, global sales, said: “The index reflects the investment performance of property assets in the UK, offering a liquid, representative exposure to the UK commercial property landscape.”
bridget.oconnell@estatesgazette.com
