Specialist property boutique Invista Real Estate Investment Management is bracing itself for a further deterioration in the already volatile UK commercial property market.
Invista says it will be managing its cost base "tightly" after suffering a 65% fall in operating profit in H1 this year, from £23.6m to £8.2m. The firm’s AUM plunged 8% during the period, falling from £8.7bn to £7.98bn.
Struggles for the UK commercial property market hit Invista’s open ended funds, with outflows of £180m in the first six months of the year.
CEO Duncan Owen says Invista continued to make progress in H1 despite the “considerable headwinds”.
“We do anticipate market conditions deteriorating further. We are therefore taking action to ensure Invista REIM can withstand a worsening economic environment,” he says.
“Our business model is robust and a significant part of our balance sheet remains in cash awaiting investment, if appropriate.”IFAonline
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