Bestinvest says
This has a high quality portfolio of c.150 properties valued at £1.9bn spread throughout the UK. We place high importance on long lease length (14 years), low vacancy rate (5%) and low tenant risk. Its underlying sector exposure will tend to be broadly in line with the IPD Benchmark for UK Commercial Property. The high cash position (15%) may hold back performance and dividends. The fund is structured to offer 'core plus' exposure to the UK commercial property market. The manager has access to one of the largest groups of analysts in the UK, Prudential Property Investment Managers (PruPIM). In April 2012 we downgraded this to 3 stars, as we now prefer funds of property shares.
The fund aims to provide long term value by investing in UK commercial property. The fund targets 5 key property sectors: standard retail, retail warehouses, shopping centres, offices and Industrials. The manager has access to one of the largest groups of analysts in the UK, Prudential Property Investment Managers (PruPIM). Around 1,500 to 2,500 new properties are screened annually by PruPIM (the underlying managers) and prospective properties are analysed through a number of bespoke valuation models. The strategy is continually reviewed with importance particularly placed on: tenant exposure, lease expiry profiles, vacancies (current and potential) and liquidity. The core of the fund will consist of prime properties, but the manager will also invest in some secondary assets which offer management opportunities.