It’s the close period
At Property Partner we work hard to be clear, comprehensive and transparent with our information disclosure. We want to help our clients make good investment decisions and understand the key risks. Our Resale Market now has £135m of property being actively traded, and we must ensure that we treat all clients fairly with regard to information disclosure.
Consequently, every three months we close our Resale Market for three working days to allow for any disclosures, updates and the orderly announcement of information that could be price sensitive. Today at 11am the Resale Market closed and will re-open for trading at 11am Wednesday 10 April.
We are releasing a substantial set of announcements relating to our properties which you can find links to in this blog.
But before we get to that, I wanted to mention some of the key developments over the past few months.
Total portfolio returns 4.9% over past 12 months
I’m happy to be able to report that our portfolio has performed well over the past year. Total return is 4.9% across the whole portfolio, with the regional properties delivering a total return of 6.8% and London properties delivering 0.8%. Read more here.
Despite the soft residential market, PBSA yields have proved to be resilient
We know many of our clients have a strong appetite for the higher yield PBSA blocks, and in recent months we have reviewed many student blocks in Russell Group university towns and other cities. We have been conservative in our bidding, searching for high yields, but have found ourselves outbid on several occasions. This shows the PBSA block market values are remaining robust (even increasing) and investors wishing to get into this market will need to accept net dividends starting at 5%. Resale Market PBSA values on our platform also reflect this reality with average net dividend dropping to 5.93% as the share price moves to a premium vs initial listing.
Opportunistic Fund is partially invested
We raised a £2.1m opportunistic fund in January 2019, with the intention to be a cash buyer for discounted properties available from highly motivated sellers. We were delighted to pick up a block of 18 student apartments in Coventry for £1.3m, which we believe will deliver the target 10% return or more. We are working hard to deploy the remainder of the fund, and have a number of deals being negotiated.
Sale of three properties has delivered 33% total return to investors
Back in July 2018 we identified four London properties that we advised investors had achieved the bulk of their expected capital gain due to Crossrail. Investors agreed in a voting process to sell these properties, and I am pleased to report that we have now completed the sale of the third of these properties, Heathlands Way.
The three properties were sold returning £850,000 to investors at a collective premium of 1% to RICS valuations. This represented a 14% increase over their last trading value on our resale market, and resulted in 33% total return to investors. The fourth property did not fetch its target sale price, has been relet and returned to the Property Partner Resale Market.
Total development loan investment surpasses £3m
We have continued to source carefully selected mezzanine debt opportunities in partnership with Proseed Capital, with total lending now exceeding £3m. In January we also enabled clients to open an Innovative Finance ISA alongside their general Property Partner account. This account enables investors to invest up to £20,000 per annum and transfer-in existing ISAs, with any gains shielded from income tax subject to personal circumstances.
Award winning – again!
We’re particularly pleased to be recognised for the second year running as winner of the Best Property Investment Service 2019 in the Online Personal Wealth Awards, and excited that Golden Hill Fort has been shortlisted for Deal of the Year 2019 in the RESI awards.
I would like to thank all our clients for continuing to support us. Please feel free to email me at email@example.com with any thoughts and I’ll endeavour to respond to all messages.
Marshall King, CEO
Revaluations & total returns
We regularly revalue the properties on our platform using independent RICS chartered surveyors.
Selective dividend changes, based on a review of the income performance of every property on our platform
Read about the properties we think are the hidden gems on our Resale Market.
Resale Market rebates
Read about the incentives we offer for trading large volumes on our Resale Market
Improved portfolio tracking
We recently improved the way you can track your portfolios performance
Use the links below to read updates on specific properties and investments:
Regent House, Basildon Development Loan
Sherborne House, Cannon Street
Heathland’s Way asset sale
Fire safety Review: Premier House and The Picture Works
Opportunistic Fund update
As always, our team is here to help you. If you have any questions regarding any of the updates please do get in touch.
Please note: when you invest your capital is at risk and past performance is not a reliable indicator of future performance.