LONDON-ING UK Real Estate Income Trust Ltd. recently reported its financial status from the first half, including that the firm increased net asset value to $258 million, as opposed to $206 million in the first half of 2009. The company credits this success in part to the acquisition of the 33-property Rugby REIT portfolio, mostly properties in greater London and the South East market, for $48 million.
The company has already sold three of the Rugby properties for $2.2 million, and plans to sell more of the sites. “The acquisition has provided the company with exposure to a number of quality assets,” said Nicholas Thompson, chairman, in a statement.
As for economic pressures, Thompson says he believes the strong rebound in property values was short term and has largely run its course. “We believe a further improvement in the underlying economic position within the UK is required to improve occupier demand and rental growth. There are however signs of stability in terms of rental levels in some markets, but this is not yet widespread or consistent across the UK. Wider economic issues remain at the forefront, with the degree of impact of the ‘austerity budget’ not yet clear,” he said.
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