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Outperforming the benchmark – Henderson UK Property Fund

01/08/2012

Mike Thatcher

We have worked in partnership with Henderson Global Investors for 20 years on their £165m UK Property Fund.

The Fund invests in commercial property and is geared towards acquiring assets with active enhancement opportunities. They require a property consultant that can work with them to uncover all opportunities to add value, wherever they acquire in the UK.

Integrated investment strategy and asset management unlocks value

We work with Henderson to provide an integrated capital markets and asset management service, focusing on stock selection, asset management and disposal strategy.  Our property management team provides the platform for performance – ensure that the basics are right – rent collection, maintenance and repairs and regular inspections.  To capture all opportunities to increase capital value, our asset management team works hand in hand with capital markets specialists to ensure we identify the best properties to acquire and to deliver creative ways to help Henderson to drive performance from existing assets.

Active management strategy that delivers property outperformance

We have helped the fund managers to outperform the benchmark across one-, three-, five- and 10-year periods as well as outperforming the benchmark since its inception in 1994 (data as at June 2012).

Cameron Fraser, Fund Manager and Director of Property at Henderson, said: “The Fund’s outperformance is a direct result of our value-add strategy and our philosophy of bringing forward creative and innovative asset management initiatives across the portfolio. Lambert Smith Hampton is a key driver of this success.”

An example of how we contribute to the long term success of the Fund is the Old River Lane development in Bishop’s Stortford where Henderson is currently proposing a £105m retail development. This project started in 1997 with the acquisition of an office building let to East Herts District council. We identified an opportunity for a wider redevelopment, acquiring the adjoining multi let office building for Henderson in 2005. We then oversaw partial refurbishment of the property and helped the council to relocate. Most recently, we acquired the adjoining two car parks which gave Henderson the ownership of the full site. The proposed £105m retail led development scheme is current awaiting final planning approval.

Further information about the Henderson UK Property Fund

The Fund invests in all forms of commercially rented investment property throughout the UK and is secured against a diversified portfolio of 29 properties (including indirect property).  In the direct portfolio there are over 290 tenancy agreements underpinned by more than 240 companies.  Key assets include: the proposed £175m, 600,000 sq ft Silver Hill scheme in Winchester, which Henderson bought from administrators acting on behalf of Thornfield Properties in 2010; and Old River Lane in Bishop’s Stortford.

A video interview with fund manager and director of property Cameron Fraser about the fund's performance can be viewed here.

For further information relating to this news article contact 
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