Cordea Savills UK Income and Growth Fund acquires two new assets (UK)

Cordea Savills, the international property fund manager, has raised further equity and completed the purchase of two assets worth a total of nearly £10 million (approx. €11.6 million) on behalf of its UK Income and Growth Fund. The Fund now has six assets with value of £77 million offering diversification, high quality income and liquidity.

The first acquisition is Apollo Park, near Warrington, a new mixed-use development let on long leases with RPI indexation to tenants including Travelodge, Harvester and Starbucks. It is in a strong location next to junction eight on the M62, dominating a local catchment area of 1.25 million people and adjacent to IKEA and M&S stores.

The second acquisition is also a mixed-use property in Jermyn Street, London SW1, comprising a retail unit on the ground floor and basement let to Russell & Bromley, with offices and consulting rooms above. This property offers potential to enhance value via asset management.

George Tindley, Fund Director, commented: "We continue to seek assets that will deliver secure income but which are capable of delivering outperformance in the future either through rental growth or asset management. The Fund offers attractive returns at a time of market uncertainty achieving a total return of 8.3% over the last 12 months (to June 2011) compared to the IPD All Balanced Funds Index of 7.7% delivering a distribution of 5.5% over the same period."

Cordea Savills UK Income and Growth Fund is a Jersey Unit Trust with a Luxembourg FCP feeder. The Fund's objective is to deliver a net income distribution in excess of 5% as well as capital growth over the longer term. It invests in prime assets across all the main commercial sectors.

Source: Citigate Dewe Rogerson

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