Unlisted UK property sector outperforms equities in 2011

By Bridging Loan Directory -

Unlisted property funds outperformed equities and property REITs in 2011, but fell short of the returns delivered from direct commercial property over the year, according to the AREF/IPD UK Pooled Property Fund Index (UK PPFI) reports Property Funds World.

Pooled property funds delivered 1.2% in Q4 2011, as returns continued to slow, delivering an annual return of 7.1%. Direct commercial property, measured by the IPD UK Monthly Index, returned 8.1%, equities -3.5% and property REITs -8.8%.

Malcolm Hunt, Director of UK and Ireland Client Services, said:

“Pooled Fund capital returns remained positive in the fourth quarter at 0.4%, in contrast to the underlying direct property market which trended into negative territory.  An increasing proportion of the 56 contributing funds experienced capital depreciation, but average levels of gearing still fell for the 11th consecutive quarter, down to 3% for balanced and 32% for specialist funds.”