Property  

Glover aims to double size of F&C UK Property fund

The fund has gained 7.6 per cent since its launch in June 2010, according to FE Analytics, lagging many of its direct property peers, but its shorter-term performance has seen it break into the top half of the IMA Property sector rankings in the six months to October 15.

Mr Glover said he hoped to hit £100m of assets by the end of the year, before adding another £50m during 2014. As part of the planned expansion, he and co-manager Julian Smith are looking at “four or five” other properties, primarily in the south east of the UK.

He warned that there was “not any easy money to be made” in commercial property, but argued that property values were still 30 per cent below their 2007 peak.

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“It would be wrong to say we can capture 30-40 per cent growth – we’re saying a few percentage points of capital value growth a year,” he said.

Most recently Mr Glover completed the purchase of an office in Kent from a “distressed seller”, which the manager said would produce a long-term income of roughly 7 per cent and had already increased in value by 5 per cent.

In spite of its underperformance, the fund has one of the highest payout levels in the IMA Property sector, with a yield of 4.6 per cent, according to Mr Glover.