F&C UK Real Estate Investments Limited

Peter Lowe

Director, Fund Manager

View Bio

The trust aims to deliver an attractive level of income together with the potential for income and capital growth from investment in a diversified UK commercial property portfolio. It offers investors prime exposure to commercial property assets.

Objectives

The Company’s investment objective is to provide ordinary shareholders with an attractive level of income together with the potential for capital and income growth from investing in a diversified UK commercial property portfolio.

 
Investment Policy and Management of Assets

The Company holds a diversified portfolio of freehold and predominantly long leasehold (over 60 years remaining at the time of acquisition) UK commercial properties. It invests principally in three commercial property sectors: office, retail and industrial.

 
The Company invests in income producing investments. Investment decisions are based on analysis of, amongst other things, prospects for future income and capital growth, sector and geographic prospects, tenant covenant strength, lease length, and initial and equivalent yields and the potential for development or redevelopment of the property. The Company will not invest in other investment companies or funds.

 
Investment risks are spread through investing in a range of sectors across the UK, and through letting properties, where possible, to low risk tenants. The Company has not set any maximum geographic exposures, but the maximum weightings in the principal property sectors (stated as a percentage of total assets) are: office: 60 per cent; retail: 60 per cent; and industrial: 50 per cent. No single property may exceed 15 per cent of total assets and the five largest properties may not exceed 45 per cent of total assets.

Income receivable from any one tenant, or tenants within the same group, in any one financial year shall not exceed 20 per cent of the total rental income of the Group in that financial year. At least 90 per cent by value of properties held shall be in the form of freehold, feuhold or long leasehold (over 60 years remaining at the time of acquisition) properties or the equivalent.
 
The Company uses gearing to enhance returns over the long term. Gearing, represented by borrowings as a percentage of total assets, should not exceed 60 per cent. However, it is the Board’s present intention that borrowings will be limited to a maximum of 45 per cent of total assets at the time of borrowing. The Board receives recommendations on gearing levels from the Managers and is responsible for setting the gearing range within which the Managers may operate.
 
The Company’s borrowings are represented by a £60 million bank loan, which is described in more detail in note 12 to the accounts.
 
At each Board meeting, the Board receives a detailed presentation from the Managers together with a comprehensive analysis of the performance of the Company, and compliance with investment restrictions during the reporting period.

Investment Risks

The value of your investments and any income from them can go down as well as up and you may not get back the original amount invested. The value of property reflects the opinion of valuers and is reviewed periodically. These assets can also be illiquid and significant or persistent redemptions may require the manager to sell properties at a lower market value adversely affecting the value of your investment. Investments which are concentrated in a specific sector or country may result in less diversification and hence more volatility in investment values. Gearing is used for investment purposes to obtain, increase or reduce exposure to an asset, index or investment. The use of gearing can enhance returns to investors in a rising market, but if the market falls the losses may be greater.

Fund Facts and Key Dates

Fund Facts
Investment manager BMO Investment Business Limited
Launch date 1 June 2004
Total assets £369.28 million (as at 30.06.18)
Currency Sterling
ISIN GB00B012T521
SEDOL B012T52
Ticker symbol FCRE
Key Dates
Annual general meeting
Year end 30 June
Dividend payment date(s) March, June, September and December

The Board

David Ross
Director
David was appointed as a Director in March 2015. He was a founding partner of Aberforth Partners LLP, an investment management firm specialising in investing in UK smaller companies, from which he recently retired. He is also a non-executive director of EP Global Opportunities Trust plc and JP Morgan US Smaller Companies Investment Trust plc.
Andrew Gulliford
Director
Andrew was appointed as a Director in May 2004. He is a chartered surveyor and was, until 1 January 2006, deputy senior partner of Cushman & Wakefield Healey & Baker. He joined one of its predecessor firms in 1972 and was head of the firm’s investment group for twelve years until the end of 2002. He advises a number of institutions on property matters.
Mark Carpenter
Director
Mark was appointed as a Director in May 2015. He is a chartered surveyor and is Director of Investment at TH Real Estate, a global real estate asset management company. He is also a non-executive director of other TH Real Estate property funds invested in the UK and overseas.
Vikram Lall
Chairman
Vikram was appointed as a Director in April 2013. He is a qualified chartered accountant and was, until 2003, an executive director of Brewin Dolphin Holdings plc with responsibility for corporate finance. Prior to joining Brewin Dolphin, he worked as a corporate financier for many years. He is a director of a number of private limited companies.
Alexa Henderson
Chairman of the Audit Committee
Alexa was appointed as a Director in December 2015. Alexa is a member of the Institute of Chartered Accountants of Scotland and was previously a Director of the WM Company. She is a non-executive Director and chair of the audit committee of Dunedin Smaller Companies Investment Trust plc and Adam and Company. She is also a non-executive director of James Walker (Leith) Limited, Bravura Solutions Limited and JPMorgan Japan Smaller Companies Trust plc.

How to invest

Invest with BMO

BMO offers a range of plans designed to meet different investment goals and help you make your money work harder.

As with all investments, you need to be comfortable that you may not get back the original amount invested.

Opening a BMO plan is easy. 

Choose your perfect plan.

Invest with a broker

You can invest through your usual financial adviser, or through a wide range of companies.

Information in this section of the Website is directed solely at persons who are located in the UK and can be categorised as retail clients. Nothing on this website is, or is intended to be, an offer, advice, or an invitation, to buy or sell any investments. Please read our full terms and conditions and the relevant Key Information Documents (“KID”) before proceeding further with any investment product referred to on this website. This website is not suitable for everyone, and if you are at all unsure whether an investment product referenced on this website will meet your individual needs, please seek advice before proceeding further with such product.