Real Estate Capital UK commentary
UK property securities returned 4.4% in December, with REITs outperforming property companies, at 6%. Macquarie Research figures show that over the year, UK property stocks returned 28.7%, compared to a 43% developed markets average annual return.
France was the best performing developed European market, at 47.4%. Derwent London was the best performing £1bn-plus cap UK company last year, with a 110% 12-month return, followed by Hammerson, at 33.2%.
Nomura turned bearish in a note called ‘Credit cold turkey’, stating: “The easy money has probably already been made after the sector’s largest-ever six-monthly rise and values inflating at their fastest rate since 1994.” South African investor Nathan Kirsh’s 50p-per-share hostile bid for Minerva has failed after its share price rose to 75p.
Invista European Real Estate Trust’s shares fell 25% after it raised £53.8m of equity, mainly to pay off €40m of senior debt. Its pre-tax losses doubled to €133.8m for the year to 30 September. Its external fund manager, Invista REIM, has been talking to a third party about a possible takeover.