Further takeover bids are predicted in the property sector by Peter Duffy, the Touche Remnant director who manages the TR Property Investment Trust.
In a worldwide review of prospects for the property market, he says that in the absence of a general downturn in world trade, prospects for property investment are good. In the UK the economic revival is prompting a rise in values, particularly in the South, and activity is becoming intense in the London area.
The share market will undoubtedly see more takeover bids. He says that TR’s involvement in direct property has been held at a low level while share markets have been so buoyant.
The principal theme underlying investment policy in the UK quoted property share sector was the selective enlargement of the trust’s exposure to promising junior property companies.
Since March last year, holdings of 5% plus have been announced in respect of Helical Bar, Local London Group, Five Oaks Investment and New Cavendish Estates. At the year-end, 64.2% of TR’s assets were invested in the UK property share sector.
The portfolio of unquoted property companies was enlarged with the purchase of a 13% holding in Sibec, a fast-growing retail centre specialist and a 20% holding in Skillion Holdings, which Mr Duffy says is making excellent progress in the business centre market.
The policy is clearly paying off. Net assets per share in the year to March 31 1987 advanced 42.5%, compared with a 27.9% advance on the FT Actuaries Property Share Index and an increase of 23.4% in the FT Actuaries All-Share Index.
Revenue after all charges and tax rose 3.5% to £2.03m and the dividend is increased by just 5% from 1.33p to 1.4p with a final of 0.875p.
