Invista Foundation Property Trust has announced that its net asset value increased by 2.7% over the last quarter of 2010.

Its net asset value rose to £177.4m or 49.9 pence per share. The directly held property portfolio increased in value by £1.1m or 0.3% over the quarter, with an additional increase of £0.16m in the NAV of the company’s joint ventures.

The firm announced it would be paying an interim dividend of 0.88 pence per share for the period 1 October to 31 December 2010.

Invista said the largest contributor to the rise in its quarterly figures was a £5.6m decline in the negative marked to market value of the group’s interest rate swaps. The total negative marked to market value of these swaps has reduced to -£26.9m, now representing 7.6 pence per share or 15.1% of the total NAV. 

As at 31 December 2010, the company’s direct property portfolio comprised 57 properties independently valued at £329.72m. 

During the quarter Invista completed the acquisition of Keith House in Edinburgh for £8.05m, reflecting a net initial yield of 14%.

Invista will also seek revised planning consent for its 100,000 sq ft retail warehouse development at Hinckley in the East Midlands to alter the layout. The firm announced it has already agreed terms with three retailers totalling 70,000 sq ft at a rent of approximately £0.8m per annum. 

But at the Gate Centre in Brentford, a BMW franchisee has pulled out of a proposed new letting after having underestimated their fit-out costs. 

The company’s quarterly Investment Property Databank (’IPD’) Benchmark shows that over the 12 months to 30 September 2010, the firm’s underlying directly held portfolio produced a total return of 19.1%, compared with the Benchmark of 20.4%.  

Although the inclusion of indirect investments increases the company’s total return to being in line with the IPD Benchmark, the direct portfolio performed less well on a relative basis due to a lower exposure to prime Central London office assets, which outperformed the rest of the UK market. 

Last week the firm announced that it is in exclusive negotiations, jointly with Invista European Real Estate Trust SICAF and the Investment Management team, to acquire the business of IREIM from Invista PLC. 

While the commercial terms of the transaction have been agreed in principle, legal contracts have not yet been signed and regulatory approvals have not yet been obtained. It is expected that the company’s share of the consideration for the proposed acquisition will be funded from existing cash resources. 

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