The two biggest UK direct property unit trusts have separately lost money and generated less than 0.5pc in the first five-and-a-half months of 2007.
The figures suggest the myriad warnings over the health of the UK commercial market are coming home to roost and investors would do well to reallocate their real estate exposure overseas. Norwich Union’s £4.2bn Property Trust and New Star¹s £2bn Property Unit Trust are significantly lagging their returns across the same period last year. “On current growth both are set to fall well short of the 9pc to 10pc the UK market is forecast to generate this year. Year to date, Norwich¹s fund returned 0.42pc and New Star¹s lost 0.03pc (bid-to-bid, according to Lipper, 29.12.06 to 17.05.07). ...
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